“Getting mortgage ready, speaking to a broker, and seeing what deals are out there are the right moves to make if you are planning a summer purchase.”
Mr Thompson said there will likely be rates drops in the weeks ahead. He explained: “In advance of the Bank of England announcing its first cut, we’d likely see swap rates decreasing with lenders cutting the mortgage rates on offer as a result.
“In fact we have seen this over the last week ro so, which means we should see fixed mortgage rates start to reduce again.
“This will be undoubtedly good news for those looking to remortgage, upsize or get onto the property ladder for the first time.”
Turning to the question of when the base rate could finally drop, the analyst said: “There were positive signs in the voting intentions yesterday, with a second member switching their vote from hold to cut.
“But with policymakers waiting for signs that inflation has been shaken off – there may be some way to go yet.
“Also, once the economy starts to really improve, there is arguably less need to cut rates sharply, so if that news continues to improve, we will still most likely get some BBR reductions, but maybe not too many.”
The latest GDP figures showed the UK economy has grown in the first quarter of 2024, recovering quickly from a brief recession.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “Personal budgets have been badly bruised by rising bills and high borrowing costs over the past couple of years, with some consumers still struggling with the financial fallout from the protracted cost-of-living crisis.
“Using credit to cover everyday living expenses has become the norm for some, which is why troublesome debts must be tackled head on rather than hoping the problem will just go away.
“It is not just those out of work facing debt challenges: a fifth of clients in full-time employment seeking debt advice are grappling with a negative budget, where their expenditure exceeds their monthly income.”
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