Lets talk mortgage rates

Mortgage rates hit a high in 2022 and the first half of 2023 making it more difficult for buyers thus affecting the housing market. However, banks have seen a steady decline on inflation giving them confidence in lending at a lower rate.

If inflation continues to fall, the majority of industry insiders are optimistic that the top mortgage rates could dip below 5% again.

On 27 October, the average mortgage rates, according to Moneyfacts, are:

• Two-year fixed deal now stands at 6.32%
• Five-year fixed deal now stands at 5.88%

On 1 October:

• Standard variable rate (SVR) is 8.18%

First-time buyers

First-time buyers often have smaller deposits of between 5% and 10% of the value of the home.

A small deposit might mean you are more limited in the number of deals available to you. If you do find a suitable deal, the interest rates are likely to be higher than if you had a bigger deposit because lenders will see you as riskier.

There are many resources out there to help you find the best deal for you, speaking to a mortgage advisor, chatting to the bank, sometimes banks and building societies hold back deals for existing customers. There are many mortgage calculators and credit score checker facilities online, this is a great way to keep on top of your credit score ensuring you get the best possible deal.