After September’s significant leap in mortgage rates, they have started to fall as lenders grow in confidence and market conditions have started to stabilise.

The bank of England has raised the base rates nine times since December 2021 which not surprisingly has had a major impact on mortgage borrowing costs.

But while the bank’s attempt to curb increasing inflation has seen the base rate hit 3.5% rather than the 6% many analysts had predicted; inflation is now expected to peak at around 4.5%.

Falling mortgage rates provides a major boost for many would-be home buyers, many of which have been forced to re-evaluate plans to purchase a property in recent months – Nationwide for example has reduced its mortgage deals by up to 0.6% in recent weeks, with other lenders set to follow suit.

Former housing analyst, Anthony codling, of Twindig said: “The Bank of England has revealed that mortgage rates fell in December. If we combine the impact of falling mortgage rates and softening bouse prices, many would-be homebuyers may feel themselves priced back into the housing market suggesting that despite challenges elsewhere in the economy, it is not all doom and gloom.”

On average, mortgage rates have fallen since the period following the ill-fated Liz Truss mini budget when stirling volatility and market uncertainty meant that some lenders including NatWest, Barclays, Halifax and Virgin Money all pulled deals and brought them back to the market at higher prices. Although they are still higher than at the beginning of September 2022, the rate for a typical, new two-year fixed-rate home loan peaked at 6.65% in October it has now dropped to below 6%.

This has resulted in a far more settled picture as people start to have a little more confidence in the market and this is expected to continue as the year progresses, although some are sitting tight for the time being.

David Phillip commented “although new instructions are lower in January 2023 than the previous year, where people are listing their properties we are seeing a good level of viewings – Dale Cottage on Hall Drive in Bramhope was launched last Tuesday – we have already had three offers on this property which is very encouraging. If properties are priced and marketed correctly, then people are receiving offers and ultimately sales on their properties”.

If you are considering selling your home and would like a free market appraisal, call David Phillip FRICS on 01134 676 400.

David Phillip Estate Agents, 86, Leeds Road, Bramhope, Leeds, LS16 9AN w: davidPhillip.co.uk info: e-mail@davidphillip.co.uk

Covering Bramhope, Adel, Cookridge, Pool-in-Wharfedale and Otley