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

Apr 11, 2024


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 housing market.

Rates on the Decline:

  • A wave of cuts swept across the mortgage market, with several major lenders like Barclays, Santander, HSBC, and Halifax slashing fixed-rate deals by up to 0.2%. This follows a trend of falling average swap rates, offering a glimmer of hope for borrowers.
  • Mortgage rates have been on a downward trajectory in recent months, following a period of sharp increases in late 2022 and early 2023. This is likely due to:

-Positive inflation data suggesting inflation might have peaked.

-The Bank of England holding the base rate steady for several months.

-Anticipation of potential base rate cuts in the future.

House Prices Still a Hurdle:

  • Despite falling interest rates, the housing market continues to cool down. Reports indicate a further decline in house prices, the biggest drop in 14 years.
  • While this might seem positive for affordability, it’s coupled with rising costs of living, making it difficult for many first-time buyers to save enough for a deposit. 
  • Mortgage rates may have not yet fallen enough for many to borrow the mortgage amount needed or afford the payments.

Expert predictions:

  • Base Rate: Many experts predict the Bank of England will cut the base rate in the coming months, possibly as early as June 2024. This could lead to further reductions in mortgage rates.

What This Means for You:

  • If you’re considering buying a home, it’s crucial to shop around and compare mortgage deals to find the best interest rate.
  • Remember, even with lower rates, a deposit is still essential in today’s market.
  • New mortgage schemes with the lenders like Accord allow purchase with just a 1% deposit. However eligibility is strict, see more here 
  • Consulting a mortgage advisor can help you navigate the complexities of the current market and make informed decisions.

Also in April 2024 Mortgage News:

  • A report by Uswitch highlighted a significant increase in buy-to-let mortgage deals with lower rates, potentially attracting more landlords to the market.
  • The ongoing housing market slowdown has led to a rise in the proportion of homes listed for sale with price reductions.
  • Concerns persist about a potential rise in mortgage defaults, particularly for borrowers who secured mortgages during the period of ultra-low interest rates.

Stay Informed:

This is just a snapshot of the week’s mortgage news. It’s important to stay updated on the evolving market by following reliable financial news sources and consulting with mortgage brokers for personalised advice.


Steven Morris – Advising Director



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.

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