The Telegraph - Mortgage rates tipped to fall below 4pc as early as next week
The Telegraph reports mortgage rates could to fall below 4pc as soon as next week, after swap rates fell to levels not seen since May.
Swap rates, a leading indicator for mortgage rates, fell to 3.99pc on Tuesday before dipping further – to 3.94pc – on Thursday.
Aaron Strutt, of brokerage Trinity Financial, told The Telegraph some major banks think that 3.99pc five-year fixes will reappear “over the coming months”.
After offering high rates for so long, Mr Strutt said lenders are doing more to make their phones ring again – including offering ‘loss leading’ products where the profit margins are very tight.
He added: “They are concentrating on making their property purchase rates cheaper which means many remortgaging customers will pay slightly more. But the price war is intensifying and is likely to pick up again in January.
“Lenders have been consistently undercutting themselves for weeks now, with some banks making price improvements twice a week.”
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