Mortgage sales head at London Mortgage Partners, David Gissing, reckons trackers will reach a parallel with fixed over the next few months.
But he added: "Provided swap rates keep trending downward, fixed rates should also reduce in line. The [BoE] rise is likely already factored in - it’s been spoken about for weeks now."
SONIA swap rates
| Current | 30 Jan 2023 | 03 Jan 2023 | 31 Jan 2022 | |
|---|---|---|---|---|
| 1 Year | 4.235% | 4.241% | 4.323% | 1.008% |
| 2 Year | 3.979% | 3.997% | 4.319% | 1.302% |
| 3 Year | 3.772% | 3.789% | 4.180% | 1.369% |
| 5 Year | 3.553% | 3.566% | 3.954% | 1.321% |
| 7 Year | 3.414% | 3.421% | 3.774% | 1.265% |
| 10 Year | 3.337% | 3.337% | 3.651% | 1.224% |
| 15 Year | 3.305% | 3.298% | 3.574% | 1.183% |
| 30 Year | 3.164% | 3.144% | 3.384% | 1.066% |
Source: Chatham Financial [Updated 31 Jan 2023 | 23:30 GMT]
Leamington Spa-based broker Rachel Dixon is also convinced that lenders' rates have already factored in the up coming base rate rise.
"If you think back to October, forecasts were 6 per cent and above. Lenders have been repricing weekly and actually need to lend, that’s business," she explained.
"It may be gradual and small but hopefully in the right direction downwards. I’m still of the believe that we will see a more competitive market by the summer."
Dixon said she is currently really busy with new enquiries. "We just need confidence to return and more people come on the market ."
In December, mortgage approvals fell for a fourth consecutive month in December 2022, reaching the lowest level seen since May 2020, during the first lockdown.
ruby.hinchliffe@ft.com
