Mortgage borrowers on fixed rates have already escaped the worst of the interest rate rises and the direction of travel for rates is currently downwards.
But 1.5 million homeowners will come to the end of their fixed-rate mortgage deals in 2024 and at the moment there still remains a wide gulf between the interest rates on new lending (gross advances) and existing lending (balances outstanding).
On latest data the average fixed rate for new lending was 4.73% whilst the average for existing borrowers was 2.76% (data to end Q3).
These borrowers will almost certainly face an uplift in their monthly mortgage costs but it is worth shopping around for deals because, unless there is a dramatic change, swap rates and mortgage rates are on a downward trend. Source: #Dataloft, Investing.com, Bank of England, FCA
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