According to an international mortgage broker, fixed rate mortgage deals are about to fall, benefiting buyers wanting to lock into known rates of interest.
Apparently, 'swap rate' falls in the market will mean lenders being able to fix mortgage rates at lower levels, although it could take some time for rates to fall back. Lenders Woolwich and Northern Rock have already reduced their fixed rates and other lenders are expected to follow.
Our View
We believe that fixed rates are slightly on the high side at the moment. This is because lenders have been panicked into thinking that the Bank of England will consistently be increasing base rates. It seems that many lenders over-estimated the continual increase in interest rates, especially as they remained at the same level last month.
Whilst we anticipate interest rates to rise again this month, fixed rates could still come down for a while. This will obviously be of benefit to rate searching homeowners.