A recent press article announced further cuts to fixed rate mortgage rates from two of the leading high street lenders. Why not read the full article here.
Andrew Fraser, Chief Commercial Officer, comments- “After a very challenging year for developers and indeed purchasers, it is pleasing to see the trajectory towards lower interest rates for homeowners. Aside from the obvious benefits of lower monthly costs for purchasers and their respective household incomes, the downward trend on rates should give SME housebuilders requiring development finance greater confidence to commence on new projects in H1 2024.
We are certainly seeing signs of strengthening confidence across the UK market with good enquiry levels from both existing and new clients, who have first-class products to bring to market. One area that does require further focus from the main mortgage providers are rates for first-time buyers, given the importance this has on the overall UK housing market.
That aside, we are hopeful that 2024 will see a bounce back in SME housebuilder confidence, both in terms of existing projects being successfully completed and new ones commenced, on the back of continued evidence of improved conditions for both developers and potential purchasers, through lowering inflation, reduced mortgage rates, a likely reduction in the BoE interest rate from late Spring onwards and the underlying shortage of energy efficient new build housing across the UK.”
