Swap rates have fallen since the Bank of England cuts last week’s base tax rate, which last week provided “light on the horizon” for home buyers and buyers, according to Octane Capital.
The bank’s monetary policy committee voted on Thursday to reduce interest rates by 0.25% to 4.5%.
Since then, the average five-year swap rate for mortgage rates is 4.22% today, compared to 4.33 a month ago.
The professional lender added that before that, the five-year swap averaged 4.23% between the October budget and the end of last year, before climbing to 4.31% between January 1 and 6 this year.
The company noted that the average loan-to-value BTL mortgage rate for two years was 4.53% last year, but fell to 4.38% last month.
The average LTV rate to owners, which is 75% lower than 4.81% in 2024, fell to 4.65%.
“Of course, it’s still very early, but current market indicators show that home promoters and buyers in the country have highlights, and the future,” said Jonathan Samuels, CEO of Octane Capital. The year has been confirmed to become one of the greater enthusiasm compared to 2024.
“We’re not only seeing a drop in swap rates so far this year, but it’s also a trend that the Bank of England has lowered its base rate to 4.5% last week, and some industry sources have shown five. Annual swap rates are below 4% The threshold is big news.”
Samuels added: “We also see lenders acting more confidently, choosing to lower mortgage rates in an expectation of recent rate cuts, which was not the case at the end of last year, although we have seen two base rates lowered. .
“The outlook for the previous year is very good and we expect mortgage affordability to continue to strengthen in the coming months, which brings much-needed enhancement to the real estate market.”
