Halifax and others have dropped mortgage rates, so what’s next for the mortgage market?

Aug 11, 2023

Mortgage lenders finally decrease rates

It’s the news that a lot of prospective mortgage borrowers wanted to hear. One of the biggest lenders in the UK, Halifax, are set to reduce their new mortgage rates from this Friday (11/08/2023) after months of uncertainty and stress caused by high inflation. The rate cut is planned to be 0.71%, significantly decreasing the financial burden that many buyers are facing at the moment and will be a welcome relief to many.

Which other lenders have dropped their mortgage rates as of August 2023?

So far we know of Virgin Money, NatWest, Skipton, Quantum Mortgages, Keystone, Nationwide, The Mortgage Works and Accord Mortgages. And as of Monday 14th August, Santander have also dropped their mortgage rates too.

Whilst this is great news, what does this mean for the future of the mortgage market in 2023?

This short term action is definitely a step in the right direction, and Halifax are not the only lender to be offering decreased rates this week. Some experts have suggested that this is a good sign that the high inflation the UK has seen in recent times is finally starting to ease off. Inflation slowing is also great news, but it is still much higher than the government’s proposed target of 2%.

Many UK borrowers will be wondering what happens next? In reality, we predict a period of slow and steady reduction. That may not be the sharp decline in rates you are hoping for if you are currently buying a property or if your mortgage is up for renewal, but it is certainly a welcome direction after the recent chaos caused by high inflation and a cost of living crisis.

We are still helping prospective borrowers to secure mortgage deals and we work tirelessly to get the best deal for you. Get in contact with us today to see how we can help.

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

3 ways your property could be taxed as a homeowner

The UK property market has been a source of frustration, and the Labour government has identified the sector as a major barrier to economic growth. One of the areas that may be reviewed is how property is taxed. Indeed, the Institute for Fiscal Studies suggested tax...

The homebuyers checklist: 8 essential tasks to complete if you’re buying property

Buying a new home can be an exciting time, it could represent a new chapter of your life, whether you’re moving to a new location for work or searching for a property that will give your growing family more space. Yet, it can feel like there’s a lot to juggle too, so...

Why locking in a new mortgage deal could save you money

Even if your current mortgage deal doesn’t expire for a few months, searching the market now could be worthwhile and might even save you money. You can usually lock in a new mortgage deal up to six months before your existing one ends. While it might seem like a...

The General Election Results are in: What can we expect for the housing market going forward into 2025?

Mortgage Price War Heats Up: Barclays and HSBC Slash Rates - Is Now the Time to Buy? Now that the UK General Election results are finally decided and a new PM is in situ, mortgage lenders seem to have relaxed about the future of inflation and interest rates are...

Cracking the Ladder: A Guide for First-Time Buyers in the UK

The dream of homeownership burns bright for many, but navigating the UK property market can feel like a daunting climb. At Advantage FS many of our first time buyer clients start their journey believing or being told the mountain is too steep. However, with the right...

Why a Local Mortgage Advisor Makes All the Difference for Your Bristol Home Journey

Congratulations! You've decided to take the exciting (and sometimes daunting) step of buying a home in Bristol or the surrounding area. Whether you're a first-time buyer eager to step onto the property ladder or a seasoned mover looking for your next dream home,...

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

Homeownership Made (Slightly) Easier: The New £5k Deposit Mortgage

Surprise news for first-time buyers! Accord Mortgages and Yorkshire Building Society have launched a brand new mortgage product that lets you step onto the property ladder with a deposit of just £5,000. That's right, you can finally ditch the housemate and snag your...

UK Mortgage Rollercoaster: Rates Tumble, Yet House Prices Remain a Challenge (April 6, 2024)

MARKET WATCH! UK Mortgage Rollercoaster: Rates Tumble, Yet House Prices Remain a Challenge (April 6, 2024) This week in UK mortgages has been a tale of two trends: good news for potential borrowers with falling rates, and lingering concerns for some facing a tough...

UK Mortgage Rates: A Quick Look at the Last Week (as of March 24th, 2024)

MARKET WATCH! UK Mortgage Rates: A Quick Look at the Last Week (as of March 24th, 2024) This week in the UK mortgage market (as of March 24, 2024), we've seen a relative pause after several weeks of steady increases in interest rates. The Bank of England (BoE)...