Martin Lewis Mortgage Rates : How to Find the Best Deals in 2024

5/5 - (2 votes)

Martin Lewis Mortgage Rates ! Martin Lewis, founder of the Money Saving Expert website, is one of the UK’s most trusted sources for financial advice. With mortgage rates on the rise in 2024, many homeowners and prospective buyers are eager to learn Lewis’ tips for finding the best mortgage deals.

Martin Lewis Mortgage Rates
Martin Lewis Mortgage Rates

Who is Martin Lewis?

  • Martin Lewis founded the Money Saving Expert website in 2003 to provide free advice on money issues
  • The site has over 16 million monthly users, making it one of the top financial advice websites
  • Lewis has created numerous money-saving guides and tools, with advice on topics like mortgages, insurance, banking, and more
  • He is known for his straightforward approach and candid recommendations

Why Follow Martin Lewis’ Mortgage Advice?

There are a few key reasons why Martin Lewis’ advice is so highly regarded when it comes to mortgages:

Knowledge and Experience

  • Lewis has over 20 years experience writing and talking about mortgages
  • He keeps fully up to date on rates, regulations, lender policies, and products
  • The MSE team regularly meets with mortgage lenders and industry figures

Independent Voice

  • MSE is not tied to any lenders and refuses sponsorship deals
  • This means Lewis’ advice is impartial and based solely on getting the consumer the best deal

Cost-Saving Methods

  • Lewis emphasizes mortgages with low fees or special deals for certain groups like first time buyers
  • His guides outline the least expensive overall options for different situations

Accessibility

  • MSE presents advice in simple, actionable steps anyone can understand and implement
  • Tools like mortgage Best Buys tables allow easy rate comparisons

Factors Affecting 2024 UK Mortgage Rates

In 2024, some key factors are influencing the mortgage rate environment in the UK:

  • Bank of England base rate hikes – The base rate is now 4% – up over 3% from one year ago. This has a direct impact on mortgage rates.
  • High inflation – At around 10%, inflation drives up lender financing costs. These costs translate into higher mortgage rates.
  • Competition amongst lenders – More lenders fighting for business can lead to competitive pricing on certain products. This has a moderating effect on rates.
  • Government policy changes – Regulations around things like loan-to-income limits can prompt lenders to adjust rates accordingly.

Understanding these factors provides insight into why rates are climbing higher than 2022 averages and what may lead to decreases or fluctuation ahead.

Type of Mortgage Description Pros Cons
Fixed Rate Mortgage The interest rate is fixed for a set period of time (e.g. 2 years, 5 years, 10 years) – Interest rate does not change during fixed period – Higher interest rate than variable rate mortgages
Variable Rate Mortgage The interest rate fluctuates with the market – Usually has a lower initial interest rate than fixed – Interest rate can go up, making payments unpredictable
Tracker Mortgage Interest rate tracks the Bank of England base rate – Rate changes follow base rate so can fall – Payments can go up if base rate rises
Discount Mortgage Interest rate is discounted from the lender’s standard variable rate – Offers a discount on lender’s normal rate – Still fluctuates over time, less predictable
Capped Rate Mortgage Interest rate cannot rise above a set level for set time period – Provides some protection if rates rise – Rate is often higher than initial variable or fixed rate

Martin Lewis’ Top Tips for Finding the Best 2024 Mortgage

With rates elevated, Lewis’ advice focuses on finding the lowest rates quickly before they rise further. His best tips include:

1. Use Comparison Sites Wisely

Mortgage “best buy” tables help narrow options, but Lewis warns only relying on typical LTV tiers and terms can miss tailored deals. He suggests speaking to qualified brokers who can access exclusive products not on comparison sites.

2. Evaluate Carefully if Fixed or Variable

  • Consider if budget can handle potential rate swings of variable rates versus security of fixed rates in high inflation environments. Track options beyond initial period.
  • Factor in chance of additional base rate rises and when decreases could come based on forecasts.

3. Don’t Assume Need Large Deposits

With house prices high, lenders now offer a range of 95% or even 100% LTV mortgages – meaning small deposits are possible for credit-worthy buyers. This expands options greatly.

4. Know the Fees

Mortgages with higher headline rates but lower or no fees can be cheaper overall. Track all costs – arrangement fees, valuation fees, early repayment charges etc.

5. Get Fully Pre-Approved

Mortgage offers are only valid for short periods in volatile markets. Lewis suggests having everything ready for lightning fast purchase decisions – including approved Decision in Principle and identified conveyancing solicitor.

6. Be Ready to Act Fast

If aiming for the lowest fixed rates, be vigilant and prepared. As Lewis says: “When they pull cheap fixed rates, they are likely to return shortly afterwards at higher levels if it proves too popular.”

Best Mortgage Rates in January 2024

To give a sense of current pricing, below are some of the top rates on the market right now across product types compiled with data from multiple sources:

Mortgage Type Leading Lenders Interest Rates
2 Year Fixed Rate HSBC, NatWest 4.28% – 4.64%
5 Year Fixed Rate Halifax, HSBC 4.14% – 4.84%
10 Year Fixed Rate Barclays, HSBC 4.39% – 4.95%
Standard Variable Halifax, TSB Bank 5.59% – 5.99%
Tracker NatWest, Virgin Money 4.89% – 5.49%

Rates on fixed terms remain more competitive overall versus variable options, but require buyers locking in for longer periods. Those offering security of rates for 5 or even 10 years come with higher pricing. Expect rates to remain elevated and volatile into 2024 until inflation eases significantly.

FAQs on Martin Lewis Mortgage Rates

Should I get a fixed or variable rate mortgage?

Lewis suggests evaluating your budget tolerance for rate shifts, weighing cost savings versus security of fixed rates. Consider potential base rate changes when deciding.

When will mortgage rates go back down?

It depends on multiple economic factors, but Lewis estimates variable rates may decrease in late 2024 if inflation slows through the year as expected. But he warns fixed rates likely won’t drop for a long while.

Are mortgages harder to get in 2024?

Yes – lender affordability criteria is tighter thanks to interest rate rises and cost of living crisis. Good credit and income stability are essential. Using brokers can match you to more flexible lender products.

Should I get a 5, 10 or 2 year fixed rate?

While 10-year offers provide exceptional long-term security, they come at a steep premium over shorter terms. Lewis suggests 5 years offers a balance for many, but says responsibly budgeting for 2 year terms can work too. Shop thoroughly.

When is the best time to get a mortgage?

There’s no universal “best” time Lewis says, it depends on individual situations and economic conditions. He advises checking rates daily when ready, being vigilant for deals, and being prepared to apply quickly. Sign up for rate alerts.

Leave a Comment