MortgagesJan 24 2023

Monthly mortgage payments could fall by 25%

Search sponsored by
Monthly mortgage payments could fall by 25%
Sinitta Leunen/PexelsAccording to Halifax, house prices will drop by 8 per cent this year
ByJane Matthews

Those living in London saw the smallest percentage increase in monthly payments as house prices saw a much lower increase of 6.3 per cent over the year to November 2022. However, this still meant an increase of 58.6 per cent to £,2796 a month. 

Noye tempered that the positive projection with a warning that there is no guarantee that changes in the housing market will materialise as predicted.

Noye said: “Inflation is still incredibly high and people’s buying power has taken a real hit as a result, particularly with rising energy bills, but thankfully we look to now be moving past the peak.

“Lower inflation should mean interest rates stabilise and even start to drop with mortgage rates following suit.

"This could result in mortgage rates dropping to 4 per cent by the end of the year and potentially even lower in the future which will have a real impact on monthly mortgage costs, particularly for those on variable rate mortgages, and could see more people considering buying a new home as the prospect becomes more affordable."

She added: “The last few years have shown just how unpredictable the housing market really is, but with hope we are now out the other side of what has been a hugely turbulent few years and we will gradually see a levelling out in terms of rising costs.”