Back in November, mortgage approvals rose as the pause in Bank of England base rate hikes gave borrowers hope that rates may have peaked.

Fast forward to a new year and we find ourselves in the midst of a mortgage price war. With HSBC launching a five-year fix at 3.94 per cent yesterday, following Halifax’s reductions of up to 0.83 percentage points on Tuesday, the gloves really are off. As we write this update, lenders are announcing rate cuts.

With 2023 being a disappointing year in terms of amount of business done, lenders are keen to get this year off to a cracking start. It is great news for borrowers who have struggled with affordability over the past few months. Although borrowers remortgaging this year will still see an increase in their payments, the pain will not be as bad as it could have been.

As well as reducing rates, lenders have been improving criteria with better loan-to-incomes and better terms for self-employed applicants.

With Rightmove also reporting today that a record number of sellers came to the market on Boxing Day, 2024 really could be a promising year for the housing market.

Mortgages can be booked up to six months before you need them so speak to a broker to find out what is available. If, by the time you come to take out your new mortgage, rates have come down further, you are not obliged to stick with the original deal and can choose a cheaper one. The lending outlook is fast-moving; we look at all the options on the market, ensuring we find the best solution for our clients.