Mortgage Pulse Report 2024

Whilst the BoE has kept base rates unchanged, the US Federal Reserve recently cut its rate by 0.25%, bringing it in line with the BoE. The Fed expects two more reductions this year, and if UK inflation follows a similar trend, we may do the same. A key driver could be the Autumn Budget, where tax changes might squeeze incomes, reduce spending, and ease inflation – which in theory could support lower base rates in the future.

For borrowers on tracker products, this means no immediate change to monthly payments, but sentiment in the market remains cautiously optimistic. Fixed-rate mortgages continue to edge down as swap rates and gilt yields soften, with most borrowers still opting for shorter-term fixes in the hope of future cuts.

Property investors are showing resilience, with steady activity among first-time buyers and landlords. While some are waiting for clearer signs of further rate movement, many are seizing opportunities to purchase ahead of the potential impact of Autumn Budget changes.

So far, foreign investment remains stable, reflecting wider confidence in the UK property market despite global uncertainty.

People are definitely worried – we see a clear concern about repayments among our clients every day.

As brokers, we look at every possible avenue to alleviate these struggles, whether it’s increasing the mortgage term, switching some or all of your mortgage to interest only, exploring offset mortgage options, and of course comparing lenders to get the most competitive deal.  

I always suggest looking at Nationwide's quarterly house price index for housing market insights.

The rate at which prices are falling is potentially reducing - remember, as rates drop, demand increases. 

In terms of a housing crisis, there's an argument to be made that in a housing crisis, we should see house prices decreasing significantly - although we've seen drops recently, the rate of decrease is reducing, suggesting we're coming out of it.

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