Mortgage Market Autumn 2024 Update

18 October, 2024

The outlook for the UK mortgage market in late 2024 appears more positive than previous months, with potential benefits for both homebuyers and those looking to remortgage.

After a year of economic turbulence, mortgage rates in the UK are expected to gradually ease as we approach 2025. While recent rises in swap rates have caused some fluctuations in the short term, the overall trend looks set to be downward, especially given the unexpected drop in UK inflation to 1.7%, its lowest point in over three years. This figure brings inflation below the Bank of England's 2% target, which is typically a signal for potential interest rate cuts​.

However, inflation still poses a key risk. If inflationary pressures return—possibly due to surging energy costs, rising food prices, or increasing wages—the Bank of England may be forced to delay or even reverse any rate cuts, as it uses higher interest rates to manage inflation. Mortgage borrowers are being advised to act quickly and lock in current rates, as some lenders have already begun increasing their prices​.

For those with thinking about a move,  locking in a rate now could offer protection against any potential rate rises. At Choice we offer services to review your mortgage regularly, ensuring you don’t miss out on better deals before it's time to switch. Experts predict that any temporary uptick in mortgage rates isn’t necessarily reflective of longer-term trends, so securing a rate now provides peace of mind during these uncertain times.

Get in touch with your local Mortgage Consultant at one of Pearsons offices.

Ben Kany

Mortgage and Protection Consultant