Mortgage Rates Set To Fall Below 4% in Early 2025
Mortgage Rates Set to Fall Below 4% in Early 2025 and What This Means for Buyers, Sellers, and Landlords
Great news for homeowners, landlords, and buyers as mortgage rates are predicted to drop below 4% in early 2025. After a period of high interest rates, financial experts anticipate that five-year fixed mortgage deals could dip under 4% as soon as February, with two-year fixed rates following later in the year. This shift could significantly boost the housing market, making it an ideal time to buy, sell, or invest in property.
Why Are Mortgage Rates Falling?
The Bank of England recently reduced the base rate by 0.25% in November, sparking optimism across the property sector. While the base rate is expected to remain at 4.75% for now, lenders are already adjusting their mortgage products to stay competitive in 2025.
Swap rates - key indicators for fixed mortgage rates are also decreasing, reinforcing predictions that sub-4% mortgage deals will soon be widely available. If inflation remains stable and economic conditions improve, banks and lenders are expected to act swiftly to attract new borrowers.
How This Benefits Buyers, Sellers, and Landlords
For Buyers:
Lower monthly repayments - With reduced mortgage rates, homeownership becomes more affordable.
Increased borrowing power - You may be able to buy a larger property or a home in a more desirable location without stretching your budget.
A boost for first-time buyers - Getting onto the property ladder becomes easier as borrowing costs decrease.
For Sellers:
More buyer confidence - Falling rates encourage more people to enter the market.
Stronger demand - Higher interest from buyers can lead to faster sales and more competitive offers.
For Landlords:
Cheaper buy-to-let mortgages - Lower rates could reduce monthly mortgage costs, improving rental yield.
Increased tenant demand - As more buyers re-enter the market, rental properties in areas like Hailsham, Eastbourne, Brighton, and Bexhill may see greater demand.
Stronger property values - A stabilising market could help maintain or even increase the value of your investment.
What’s Next?
Preparing to Buy or Sell in 2025
If you’re thinking of making a move, now is the time to start preparing:
Buyers - Research mortgage deals, seek professional advice, and ensure your finances are in order so you can act quickly when rates improve.
Sellers - Get your property ready for the market to take advantage of growing demand.
Landlords - Review your portfolio to see if now is the right time to expand your investments or refinance existing properties.
At Bates & Co Lettings, we are here to help you navigate the changing property market. Whether you’re looking to buy or let a property in Hailsham, Eastbourne, Brighton, or Bexhill, our expert team can guide you every step of the way.
Thinking of buying or selling in 2025? Want to discuss how these market changes could benefit your rental portfolio? Contact Bates & Co Lettings today for expert advice and a free property rental valuation.
