Will mortgage rates come down next year?

[puliaismine]

Due to renew our mortgage in a years time and been wondering this. As interest rates are set to drop, will mortgage rates also fall?

Haha..no not noticeably BoE is talking about raising them

The OP is talking about in a year’s time! It’s a sensible question and almost all forecasts suggest they will start coming down from the end of this year.

I think they will come down (although not loads) by the time you remortgage OP, but be prepared for lots of silly comments like the one above from people who have no understanding of the markets!

They might come down a bit (base rate is expected to stabilise around 3.5% apparently) but they won’t be reducing to the levels we were used to (when base rate was 0.5%…).

I don’t think they’ll massively come down. They’ll either stabilise or slightly reduce.

perhaps a bit but not much. Tbh record low rates has damaged parts of the economy a
so we should try & get away from them.

Hard to predict as it depends on US Federal Reserve response to inflation and banks going under/needing bail outs.

Given the turmoil in the banking sector rates are unlikely to rise by much more. I would expect them to start stabilising but I wouldn’t assume they would come down for a while ( if at all).

Trackers, almost certainly yes. Fixed rate deals, probably not, or very little (as expectations of fall in base rate is already priced in to these)

I don't think they will come down (or at least not by any significant amount) but banks may be more confident in their stability so the fixed rates will only be slightly above the base rate (rather than well above as we saw at end of last year)

You can remortgage from 6 months before the end of your term so it might be wise to secure a rate so you have a better idea where you stand.

Banks going down anyone? Don't hold your breath for a cheaper loan.