Are Interest Rates About To Plummet?
Having barely shifted since last autumn, many analysts expect that
interest rates may start edging down. What will that mean for mortgage
borrowers and anyone looking to remortgage?
Time for a fall?
Most analysts agree that interest rates have peaked but there is less consensus
on exactly when they will start to drop.
One forecast¹ has suggested that Bank Rate rates will remain at current levels
until June this year, when a series of cuts will see Bank Rate gradually fall to 3%
by the end of 2025. Other researchers are less optimistic. One² suggests that
rates will only decrease to 4% by the end of next year.
Only one way
Despite these differences, nearly all forecasters think that interest rates will go
down in the coming years.
This should come as a relief to mortgage borrowers, many of whom have seen
their mortgage payments skyrocket after the ultra-low rates of the past decade
ended abruptly.
However, with rates unlikely to fall a large amount this year, some will still
experience a shock if they need to remortgage in 2024.
Buckle up
The road ahead may remain bumpy, but we are here to help you through it!
Your home may be repossessed if you do not keep up repayments on
your mortgage. You may have to pay and early repayment charge to
your existing lender if you remortgage.
1 Capital Economics, 2024
2 Berenberg Bank, 2024