The Bank of England raised the base rate again in February, but this doesn’t seem to be affecting mortgage rates as much as in the past. In fact, mortgage rates are still falling, and the cheapest five-year fixed-rate deal is now below 4% for the first time since early October.
This is good news for buyers who are looking for affordable ways to get on the property ladder. Additionally, inflation in the U.K. was down in January, with The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rising by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022.
This indicates that inflation may be starting to level off, which could help stabilize the property market. For those who are acting now and locking in longer rates, lower U.K. property prices may make this a good time to buy.