2024 Mortgage Rates – What are the predictions?

Monday 29 January, 2024

As we enter 2024, the markets have seen the mortgage rates for new deals beginning to fall. In fact, rates have fallen back under 4% as the leading lenders start to compete for new business. In July 2023, the average two-year fixed rate climbed as high as 6.86%.

Many lenders, including the main high street lenders such as Santander, HSBC and Halifax have started their 2024 campaign for new business with sizable rate cuts.

As the mortgage rates fall, some market analysts are predicting that both home buyers and those looking to remortgage could benefit from a potential mortgage price war.

These rate falls are partly as a result of the improving inflation rate which has continued to drop. The most recent figures highlight how the consumer price index for the 12 months to November has fallen from 4.6% to 3.9%. However, there was an unexpected increase to 4% in December which was attributed to tobacco and alcohol prices.

Despite the inflation rate fall, the Bank of England has maintained the Base Rate at 5.25%. Maintaining the rate at 5.25% is in line with the Government’s target to reduce inflation and maintain it at 2%. Due to the 5.25% base rate, the average mortgage rate deals are still above 5%. However, there are some economists that are predicting that the Bank of England may begin lowering the interest rates towards the middle of 2024. 

What does this mean for fixed rate mortgages?

As the battle between lenders increases, the mortgage deals are likely to become far more competitive. 

This is reasonably good news for people about to remortgage, but caution should still be maintained. For borrowers coming off previously ultra-low interest rates, there will still be a noticeable increase in the repayment amounts. Although the jump may now not be quite so large as at the height of the inflation crisis. 

Some analysts think there may be signs that further cuts could be possible running through 2024. Naturally, this can’t be guaranteed, so it is important for anyone looking for a mortgage to seek professional mortgage advice. This will ensure the most suitable deal can be sourced based on an individual’s specific financial position. 

What does this mean for variable rate mortgages?

For those homeowners currently on variable rate mortgages, repayments will remain on a significantly higher interest rate than those who had previously fixed. 

On average, the standard variable rate mortgage available is currently at a staggering 8.18%. With this level of interest, it may be worth speaking to a professional mortgage broker to determine if there is a better mortgage option available to help reduce the repayment costs. 

Support for mortgage holders

Have you have recently remortgaged and found the increase in repayments a struggle? Then it will be important to address the issue as soon as possible and with the help and support that is available. Most of the leading lenders, which covers approximately 90% of the mortgage market, have signed up to the government’s mortgage charter. 

The mortgage charter offers a range of support measures to help support those who are finding themselves in difficulty. 

The charter provides a framework whereby people could make a temporary change to their mortgage deal for up to six months. This change will help to provide some breathing space in their repayments. 

For example, the change could include moving over to an interest-only mortgage or extending the mortgage term to help reduce the monthly payments. 

Thomas Oliver always strongly recommends speaking with a professional mortgage adviser when making changing to an existing mortgage or looking to remortgage. The advice we provide will be fully tailored to your personal financial situation. 

Errol Hall, Mortgage Adviser in Cricklewood, London & Saffron Walden said:

“Seeking professional mortgage advice is crucial in navigating the complex landscape of mortgage rates and deals. A qualified mortgage adviser can offer tailored guidance based on your individual financial situation, helping you secure the most suitable mortgage for your needs.” 

Professional mortgage advice

When choosing a mortgage adviser, consider factors such as their experience, reputation, and client reviews. Look for advisers who are independent and have access to a wide range of mortgage products, ensuring that you receive unbiased recommendations. Transparency is key, so make sure to inquire about any fees involved and how the adviser is compensated. 

Additionally, a proactive adviser will keep you informed about market trends and potential changes, allowing you to make well-informed decisions. Remember that the mortgage process involves significant financial commitments, and professional advice can be invaluable in securing a mortgage that aligns with your long-term financial goals.

By taking advice from a professional mortgage adviser now, you could find the most suitable mortgage deal for your financial situation. Call Thomas Oliver Mortgage Advisers on 01707 872 000 or drop us an email on


Your home may be repossessed if you do not keep up repayments on your mortgage.

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