Are mortgage rates in the UK going up or coming down 2024

Apr 22, 2024

I thought mortgage rates were coming down in 2024, what is happening?

 
Let’s get a misconception out of the way early about how mortgage rates have been changing…

Mortgage rates available during January 2024 were cheaper than anything else we have seen since. For example, 5-year fixes were as cheap as 3.8% approximately, whereas they are now well over 4%.

That, in itself, is sufficient to disprove the notion that ‘rates are coming down’ in 2024.
 

Why is this happening?

 
The political landscape: Mortgage rates have been wildly unpredictable for some time now. Growing unrest in the middle east, ever-shifting outlooks on inflation at home and particularly abroad in the US, have all contributed; we have seen knee jerk mortgage repricing and rates staying higher for longer than anyone had anticipated at the beginning of the year, where a new year felt like a fresh start toward normality. This year has been a mad hatters tea party; lenders have changed places (on the rates leader board) more frequently than I can recall in recent years.

Mortgage lender service levels: Other factors such as lenders becoming oversubscribed have led to price increases as a way of recovering their customer service timescales.

Swap rates: Think of this in a simplistic sense as the cost at which lender borrow their money. They need to add a bit on to make any money themselves. If these rates go up, all other pressures being equal, mortgage fixed rates need to increase too.

As of 19th April, swap rates were around 0.1% higher than they were the same day during March 2024.

You can find out more about how swap rates affect mortgages, here:

https://www.mortgagesolutions.co.uk/news/2022/10/07/everything-you-need-to-know-about-swap-rates-but-were-afraid-to-ask/
 

What’s the latest with mortgage rates, 2024?

NatWest, HSBC, Barclays, Bank of Ireland, Leeds and Yorkshire building societies have all announced rate increases this morning…
 

What can I do about this?

If you are in a position where reserving a mortgage deal would last long enough, simply, act as soon as you can. 

Mortgage rates don’t just go aren’t in a straight line up or down, as the media may make it sound. They ebb and flow in response to a multitude of different pressures. Even the most seasoned of experts don’t really know if we are entering a trough or approaching a peak, over short or even long-term timescales right now. Second guessing them is, frankly, an incredibly risky and silly thing to do.

Particularly when there is absolutely no need to do so.

Mortgage rates are reserved, not committed to. Acting early simply means you have more opportunity to improve on what you have already reserved. 

In any event, when we are talking about borrowing against your own home, for most people, mortgages aren’t something to bet on. They are the difference between being able to afford to stay in your home or not.

 Please get advice as far in advance as reasonably possible, and consider every solution and back-up plan you can.

 

Steven Morris – Advising Director

CeMAP CeRER

 

Steve loves a complex mortgage. Most recently he has used his technical geekery to work his way up through Which? Mortgage Advisers, progressing to Senior Adviser and then Onboarding Manager. There, he was responsible for hiring, training and managing new advisers.

He also ran the monthly new starter inductions and wrote and maintained the telephony advice standards of the company. Outside of work Steve can be found coaching and being run ragged by his local under 10’s rugby team, Bristol Harlequins RFC.

Meet the rest of the Advantage Team

The pros and cons of choosing a 100% mortgage

There are now several 100% mortgages available to choose if you don’t have a deposit. First-time buyers are sure to welcome the news, but before you opt for a mortgage with zero deposit, there are pros and cons to weigh up. A 100% mortgage means you’re able to borrow...

5 practical tips if you want to get on the property ladder later in life

The average age of a first-time buyer in the UK has steadily been rising as house prices present affordability challenges, and there are plenty of people who step onto the property ladder later in life. According to July 2024 data from the Yorkshire Building Society,...

Two-thirds of homeowners could be “wildly undervaluing” their property

78% of homeowners don’t have a clear idea of how much their property is worth, according to a Zoopla survey from March 2025. It’s estimated that around two-thirds of these households are “wildly under-valuing” their home because property prices have increased at a...

Financial protection: 3 useful questions to help you calculate appropriate cover

Financial protection may provide you or your loved ones with a financial injection when you need it most. Calculating what level of cover is appropriate for you is an essential step to take when comparing options. Over the last couple of months, you’ve read about why...

Financial protection: The key options that could protect your lifestyle and family

Financial protection could provide you with a cash boost when you need it most, and there’s more than one type to consider. Last month, you read why financial protection provides a crucial safety net should you face an unexpected shock. Now, read on to find out more...

Landlords, could your loved one face a tax bill if they inherit your portfolio?

Building a property portfolio could provide you with an income stream and greater long-term financial security. It can also make your finances more complex, including when you’re deciding how to pass on assets to your loved ones. With house prices rising, many...

Why tariffs and a trade war could mean your mortgage interest rate rises

As inflation stabilised following a period of prices rising more rapidly than usual, there were expectations that the Bank of England’s (BoE) base interest rate would be cut throughout 2025. However, a potential trade war could mean the opposite happens and lead to...

Bank of Family is now funding more than 10% of buyer deposits

Parents and other family members are increasingly funding deposits as house prices soar and younger generations struggle to save the money they need. According to a March 2025 article published by MoneyAge, 10% of buyer deposits are now funded by loved ones following...

Financial protection: How it could help you bridge an income gap

You don’t know what’s around the corner, but that doesn’t mean you can’t prepare for it. A financial shock could derail your short- and long-term plans and might mean you face additional stress at an already difficult time. So, creating a financial safety net that you...

The pros and cons of borrowing more through your mortgage

Looking for a way to fund a large expense? Whether you want to make home improvements or buy a new car, your property might provide an answer. Depending on your circumstances, you might be able to borrow more through your mortgage. This would increase the overall size...

Celebrating more 5-star reviews than any other independent broker in Bristol!

Contact us today to find out why we've received over 650 hundred 5-star Google reviews

You have Successfully Subscribed!