Good news if you’re looking to move this year, as Bank of England base rates stabilises
02 February 2024
Held rates and the prospect of lower inflation is a promising sign for homebuyers, say new build mortgage experts.
Recently, the Bank of England voted to maintain interest rates at 5.25%, after raising rates steadily for the last couple of years.
Although not the drop that many hoped for, there are indications that the next change could be downwards, and inflation is also forecast to fall back to 2%.
So, what does this mean if you’re thinking about buying a new home?
Matt Halder, Managing Director of Threshold Mortgages says the recent news implies 2024 could be the right time to take the plunge if you’re looking to make a move.
“The Bank of England Monetary Policy Committee holding the Base Rate at 5.25% goes a long way to vindicate lender decision-making since the start of the year, in reducing rates, increasing loan multiples, and introducing pre-covid criteria,” says Matt.
“With the expectation of inflation continuing to fall, and the base rate likely to have peaked, 2024 offers a great opportunity for buyers seeking a new build property.”
“The mortgage market is again competitive, with rates and lender affordability making home ownership a reality rather than a dream.”
This sentiment is shared by Oliver Peace, Founder and Managing Director of James Leighton Financial Services, who suggests a combination of factors aligning could be the change buyers have been waiting for – especially those considering a new build.
“As the Base Rate and inflation drop and incomes catch up with the cost of living, coupled with meaningful reductions in mortgage product rates, many more borrowers will find that their dream home is within reach”, Oliver says.
“With many commentators expecting the Base Rate to drop towards 4.25% by the end of 2024, demand for high quality, energy efficient properties will continue to increase.”
The positive market outlook is particularly promising for anyone considering a new Persimmon home, given the added opportunity to take advantage of limited-time offers.
Until 18th February, buyers could receive up to £20k contribution towards a new Persimmon home. Alternatively, we’re offering up to £10k when you Part Exchange with us, to put towards your deposit, mortgage or Finishing Touches. (T&Cs apply, click here to find out more.)