Mortgage broker at Embrace Financial Services, James Myatt, said he expects fixed rate deals to continue to edge down slightly as 2022 draws to a close, as lenders look to hit end-of-year targets and service levels return to normality.
“The majority of borrowers are leaning towards two-year products (either fixed rates or trackers) with the hope and expectation that the current spike in inflation and interest rates will last 12-18 months, after which they will be in a position to negotiate more favourable terms in 2024/25 when their deals are up,” Myatt explained.
“Long term, or at least from 2024 onwards, I expect the Bank of England base rate to stabilise around 2 per cent and expect this to lead to fixed rates returning to between 3 and 4 per cent.”
ruby.hinchliffe@ft.com
