Competition Intensifies
The UK mortgage market is becoming increasingly competitive, with lenders reducing rates to attract borrowers and expand market share. Despite swap rate fluctuations, banks and building societies are aggressively pricing mortgages to meet lending targets.
With housing transactions below pre-pandemic levels and affordability concerns persisting, lenders are using lower rates to retain customers and entice new business. Many also anticipate future Bank of England rate cuts, allowing them to price more competitively in the short term. For borrowers, this presents a valuable opportunity to secure favourable mortgage deals while rates remain low.
What’s Driving the Swap Rate Increase?
UK swap rates have been increasing due to concerns over persistent inflation, delaying expected Bank of England rate cuts. Strong economic data and cautious central bank signals have led investors to revise their interest rate expectations. Additionally, rising bond yields in the U.S. and increased UK government borrowing have contributed to higher funding costs. Market volatility and global uncertainties have further driven swap rate fluctuations. As a result, lenders face higher costs, which could impact mortgage pricing in the coming months. Borrowers should stay informed and act quickly to secure competitive mortgage deals before further changes occur.
28th February Swaps
6th February Swaps
Late Appointments Now Available
With flexible appointments available until 7pm, we make it easier than ever to fit mortgage advice into your busy schedule. With todays reduction in the base rate and 2025 predicted to be on of the busiest years yet, securing your spot early is essential.
Don’t wait to take control of your finances and start the year with confidence and peace of mind. Contact us today to explore your options and ensure you’re set up for success. Lets make your property goals a reality.
