Mortgage rates have been falling! But there are whispers that the cheapest deals might be about to disappear! Here’s why:

Big banks like Barclays and Santander are tweaking their mortgage rates. Barclays has upped the rate on its 5-year fixed-rate mortgage from a tempting 3.71% to 3.76%. Don’t panic just yet though – this only applies to those borrowing 40% of their property’s value.

Why are rates changing?

Well, it all boils down to how much it costs the government to borrow money. You see, mortgage rates often follow the trends set by something called “interest rate swaps”. These swaps have been going up lately, hitting 3.79% – that’s a whole 0.3% jump from last month!

There are two main reasons for this:

1️⃣ The UK economy is looking a bit brighter! This means the Bank of England might not need to cut interest rates as much as previously thought.

2️⃣ The upcoming Budget is making waves. People are a little on edge about Chancellor Rachel Reeves’ borrowing plans, which is impacting government bond yields (these are closely linked to those interest rate swaps we mentioned).

Should you be worried?

The experts aren’t hitting the panic button just yet. While some of the absolute cheapest deals might disappear, most mortgage rates are still heading downwards! This trend is expected to continue throughout the year.

However…

If you’re thinking of buying a house, it might be worth getting your skates on! 🏡 The uncertainty surrounding the Budget on October 30th is making some people hesitate. Getting your mortgage sorted before then could save you some money