UK Mortgage Rates Drop to Lowest Since June, But Higher Bills Still Ahead for Many Borrowers
• Average UK mortgage rates have fallen to lowest level since June 2022, now 5.87% for 2-year fixed deals • Major lenders like Halifax and HSBC cutting rates to compete for customers as their funding costs drop • But 1.6 million borrowers face higher rates when cheap fixes expire this year despite price war • House prices rose for 3rd straight month in Dec to £287k average but forecast to fall in 2023 due to economic uncertainty • Number of mortgage approvals increased slightly in Nov, which could indicate more buyer confidence, but still 26% below pre-pandemic levels