Market Update from January 2024

Best wishes for 2024 (which starts already better than 2023 ended)!

My New Year’s resolution is to be more optimistic in general, looking at the glass half full rather than… oh well, you know the rest. Well, it seems that the market is trying to help me maintain this positive attitude as the banks announced their new rates and they all have dropped. Some have been even smashed!

While most rates were around the 5.20%* mark for 20 year-repayment mortgages, we are now between 4.40% and 4.99%. One of our main lenders even reduced their 19-year repayment mortgage rate from 5.27% to 4.50% !

We are still looking / hoping for further reductions but this is a great beginning.

The next step would be for the banks to offer more ‘’variable-capped’’ products which are perfect in this environment: the rate is variable which means clients benefit from the rate reduction but should the rates go up again, there is a cap so the increase is limited. Therefore clients have both flexibility and security on their mortgage. The rate is calculated following the Euribor 3 – 12 months + margin + 1% cap.​
Some lenders already offer it which is great and the rate starts off at 4.32% capped at 5.32%.

*average for rates offered to UK residents.