Rightmove reaction to Bank Rate hold

Matt Smith, Rightmove’s mortgage expert says: “In a rollercoaster year for the mortgage market, we end the year with a hold in the Bank Rate at 4.75%.

“While not the early Christmas present that many would have wanted, it was widely anticipated, and must be considered against a backdrop of inflation being at the top end of forecasts, and wages have increased at a higher rate than expected.

“We don’t expect any reductions in mortgage rates over the next few weeks, but as we progress into 2025, lenders are likely to look at ways to take advantage of increased demand as the busier home-buying season starts. As we move towards the end of the Stamp Duty reduction, lenders are also likely to look at reducing rates wherever possible

“Next year, three Bank Rate cuts are currently planned rather than the four anticipated just a few weeks ago, highlighting how quickly things can change in the market. We predict average mortgage rates could trickle slowly down towards around 4.0% next year, though this is dependant on the impact of a wide variety of unpredictable factors, including geo-political tensions and inflation.”

Rightmove’s weekly mortgage tracker

Average rates for 2-year and 5-year fixed-rate mortgages

Average fixed-term mortgage rates for home-buyers with 5-10% deposits

Average fixed-term mortgage rates for home-buyers with 15-25% deposits

Average fixed-term mortgage rates for home-buyers with 40% deposits

These rates are provided by Podium and are an average based on 95% of the mortgage market. All rates are based on products with a circa £999 fee.