New research we’re releasing today shows homeowners are almost evenly split on where mortgage rates are heading in the next 12 months. 23% expect them to rise, while 25% think they will fall. The findings highlight just how uncertain people feel about the outlook for mortgage rates. Aspiring first-time buyers are notably more pessimistic, with nearly half (47%) expecting rates to increase, compared with just 13% who believe they will fall.
Paula Higgins, CEO of HomeOwners Alliance, comments:
“If the Bank holds rates it will give homeowners some breathing space, but the reality is many households are already feeling deeply uncertain about where mortgages are heading. Our research conducted in February – before the latest escalation in global tensions – already showed homeowners were almost evenly split on whether mortgage rates would rise or fall, which underlines just how divided and unsure people were even before events in the wider world added more volatility.
That uncertainty often leads to inertia, with homeowners waiting to see if rates improve. But if you’re due to remortgage this year, waiting can be an expensive mistake. Leave it too late and you risk falling onto your lender’s Standard Variable Rate, which is often around or above 7% and rarely good value. The safest approach is to start the process early – many lenders will allow you to lock in a rate months in advance and still switch if better deals appear before completion.”
