In 2024, fixed-rate mortgages continue to be a popular choice among UK borrowers, offering the stability and predictability that many homeowners seek in uncertain economic times. Despite a slight retreat from their peak popularity—down from a high of 95.5% in September 2022—the preference for fixed rates remains strong. This trend is significantly different from the period before the Global Financial Crisis when a much lower proportion of lending was on fixed rates.
Earlier this week, Barclays Bank made headlines by cutting several of its key mortgage rates. This proactive move comes in anticipation of a forecasted Bank of England rate cut in August, signaling a more favorable environment for borrowers. Barclays’ decision reflects a broader trend in the market, where lenders are keen to attract and retain customers by offering competitive rates.
Data from Dataloft by PriceHubble and the Financial Conduct Authority (FCA) highlights the ongoing preference for fixed-rate mortgages. Even with the slight decline, fixed-rate products dominate the market, underscoring their appeal. The certainty of knowing exactly what monthly payments will be is a significant advantage for many homeowners, helping them to manage their finances more effectively and avoid the stress associated with fluctuating interest rates.
The shift towards fixed-rate mortgages over the past decade marks a notable change in borrower behavior. Prior to the financial upheavals of 2008, variable and tracker rates were more common. However, the stability provided by fixed rates has become increasingly attractive, particularly in a post-pandemic world where economic conditions remain unpredictable.
As we move through 2024, the mortgage market is poised for further adjustments, especially with potential rate cuts on the horizon. For borrowers, staying informed about these changes and understanding the benefits of different mortgage products will be crucial. The enduring popularity of fixed-rate mortgages is a testament to their ability to provide financial security and peace of mind in an ever-evolving market landscape.
If you need any expert mortgage advice please get in touch. At JDG we work with some of the UK’s top mortgage advisors who have access to the best deals out there that will suit your circumstances. They also take the hassle out of looking yourself!
If we can help, please get in touch. You can call us on 01524 843322 or email me at michelle@jdg.co.uk
Thanks for reading
Michelle x
