![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/mortgage-rates-are-falling-but-dont-celebrate-yet/&media=https://uknews.evprotec.com/wp-content/uploads/2023/08/130786024_bc46bfaaed6af34f141499e615226f50c0fd8c17.jpg&description=Image source, BBC Image caption, Sadia Mian says mortgage payments are a consideration for buyers making offers Among those walking through the doors of one Warringn estate agency, it is the buyers - rather than the sellers - who have more of a spring in their step. "It's definitely a buyers' market at the moment," says Sadia Mian, direcr of Northwood estate agents. They are feeling confident enough "under offer" when making a bid for a property, she says. This confidence is bred from necessity. People are having take in account the relatively expensive mortgage repayments they face after buying a home. Halifax, the UK's biggest mortgage lender, suggests that first-time buyers are still active in the housing market . There is evidence they are now searching for smaller homes in cheaper areas offset the high cost of a home loan. Mortgage rates, which recently uched a 15-year high, have cast a long shadow over the finances of potential buyers. It is the same for existing homeowners, about 1.5 million of whom will see their current mortgage deal expire by the end of next year. Many will have been delighted see major lenders, including the Halifax, Nationwide, NatWest and HSBC, cutting their interest rates on new deals in recent days. Santander is following suit with a reduction on Monday. "The cuts fixed rates are now gathering some momentum," says David Hollingworth, from broker London and Country Mortgages. "That's good news and signals a turnaround for fixed rates after the rapid increases of recent months." But even if this is a turning point, it is far o early get carried away. The average rate on a two-year fixed mortgage deal is 6.8%, according the financial information service Moneyfacts. Despite falling from its peak, that is still only back the level it was three weeks ago. Moneyfacts says the typical rate for a longer five-year deal is 6.28%, around the same as a month ago. "There is no doubt mortgage rates need reduce a few more times before most borrowers){kind=link}
Among those walking through the doors of one Warrington estate agency, it is the buyers – rather than the sellers – who have more of a spring in their step.
“It’s definitely a buyers’ market at the moment,” says Sadia Mian, director of Northwood estate agents.
They are feeling confident enough to “under offer” when making a bid for a property, she says.
This confidence is bred from necessity. People are having to take into account the relatively expensive mortgage repayments they face after buying a home.
Halifax, the UK’s biggest mortgage lender, suggests that first-time buyers are still active in the housing market. There is evidence they are now searching for smaller homes in cheaper areas to offset the high cost of a home loan.