Independent Mortgages Direct NE

Swap Rate Graph Image 2022

Swap Rates Falling – Lenders Reducing Mortgage Rates

What Are Swap Rates ?

Swap Rates are the interest rate mortgage lenders pay financial institutions to acquire funding for a set period time i.e. 2, 5 and 10 year terms which are used to set the price for mortgage rates offered.

Why have swap rates become more volatile ?

Volatility and uncertainty drove up swap rates which was due to the war in Ukraine, rising inflation, a fall in the value of sterling and of course the mini Budget.

Will the volatility continue ?

It is highly likely there will be continued volatility but for now swap rates have fallen and stabilised enough for lenders to slightly reduce the mortgage rates on offer. The table and graph above show 3, 5 and 10 year swap rates having a reduction over 1% in the last month.   


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