{"id":44312,"date":"2023-12-18T13:39:10","date_gmt":"2023-12-18T13:39:10","guid":{"rendered":"https:\/\/histarmar.net\/?p=44312"},"modified":"2023-12-18T13:39:10","modified_gmt":"2023-12-18T13:39:10","slug":"huge-relief-for-homeowners-as-mortgages-could-drop-below-4-within-weeks","status":"publish","type":"post","link":"https:\/\/histarmar.net\/world-news\/huge-relief-for-homeowners-as-mortgages-could-drop-below-4-within-weeks\/","title":{"rendered":"Huge relief for homeowners as mortgages could drop below 4% within weeks"},"content":{"rendered":"

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Homeowners may be able to secure rates below four percent within weeks amid a mortgage price war, experts have said.<\/p>\n

Lenders have been slashing their fixed rates due to falling inflation, base rates pauses and reductions in swap rates.<\/p>\n

This has led to some experts predicting that five-year fixed mortgages could fall below four percent in the New Year.<\/p>\n

TSB has slashed the cost of its home loans by up to 0.35 percentage points last week.<\/p>\n

Aaron Strutt, of broker Trinity Financial, said: “I think we will see a five-year fixed rate deal at 3.99 per cent by the beginning of next year.”<\/p>\n

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The cuts come after the Bank of England base rate decision which saw the base rate held at 5.25 percent for the third time.<\/p>\n

The cost of borrowing was raised in a bid to tackle soaring inflation, which peaked at 11.1 percent last year, in order to bring it closer to the Bank\u2019s two percent target rate.<\/p>\n

The markets are now indicating that they expect the UK’s interest rate to drop below four percent by the end of next year.<\/p>\n

Bank of England governor Andrew Bailey said that, while Britain has ‘come a long way’ in the battle against inflation, there is still further to go.<\/p>\n

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HSBC has become the most recent lender to announce further reductions to its mortgage rates.<\/p>\n

Two and five-year fixed rates are being cut for people with deposits of between 25 percent and 40 percent.<\/p>\n

But the bank is yet to confirm exactly how much rates will drop to.<\/p>\n

Nationwide previously announced a market-leading five-year fixed rate of 4.29 percent for those with a 40 percent deposit with a \u00a3999 fee and the average rate on a two-year fix dipped below six percent for the first time in nearly six months, last week.<\/p>\n