Since the Bank of England (BoE) recently voted to maintain interest rates at 5.25%, seasoned real estate expert Nick Millican has already noticed the market’s reactions. Mere hours after the announcement, “Nationwide” cut mortgage rates by 0.31%, serving as a welcome change to Londoners hurting from excessive costs.
Many see the pause as a great win for homeowners. According to recent interviews, this joy should be tempered with expectations, as the Bank of England may still be willing to raise interest rates soon. Nick Millican adds that the pause may best be described as a calm before the storm, due to the ongoing height of inflation.
It will be unsurprising to see many high-interest properties going onto the market from now into 2024. Millican regards the BoE’s decision as a strong sign to mortgage markets and a way to dull the sharp pressure of affordability for buyers (Twitter).
Inflation is still 6.7% with little sign of going down soon, real estate agent and expert Nick Millican states. Elsewhere in London’s property market, most homes are taking just over two months to sell, with only about a 0.8% annual decline in prices. While the budgets of potential property buyers may be suffering, there is still some amount of time before prices plummet.
Any homeowner seeking a better mortgage rate might luck out by asking their lender to slash a fixed rate, as some have recently experienced. The main reason for this trend would be descending swap rates which dictate fixed-rate deal prices. Nick Millican finally states that “NatWest” has already shed 0.2% on certain fixed and tracker deals and Virgin Money” started offering sub-5% interest rates.