Although rates on fixed rate mortgages are starting to go lower, experts are advising waiting a little bit longer since this trend will continue. Although fixed rate mortgages are cheaper now than they were a few weeks ago, it will still take a few more months for the rates to truly get to the point where consumers will be able to save money on them over time.
Jonathan Cornell, managing director at Hamptons International Mortgages. stated, ‘Holding base rate, while offering relief from a rate increase, will do little to ease borrowers’ pain. The average monthly mortgage repayment has been gradually increasing and with increases in energy and food costs in July, borrowers will have to stretch themselves even further. There seems to be no happy outcome at the present time.’
Ray Boulger of John Charcol commented, “Swap rates having fallen substantially over the last month, with two-year swaps a whole percentage point down from their recent peak. This has allowed lenders to make sizeable cuts in the cost of fixed-rate mortgages but it is still too soon to buy a fixed rate as rates are expected to fall further.”
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