What’s Coming in 2024: Our Mortgage Market Predictions

What’s Coming in 2024: Our Mortgage Market Predictions

As we approach the new year, and after the ups and downs of the property market in 2023 it’s natural to wonder what lies ahead. Whether you’re a prospective homebuyer, a homeowner with a remortgage on the horizon, or a property investor, understanding the mortgage market trends for 2024 can help you make informed decisions.

Interest Rate Trends

One of the biggest impacts on mortgages is what happens with interest rates. In 2023, the Bank of England base rate continued to increase before levelling off in the Autumn, impacting mortgage rates across the UK. As we look ahead to 2024, here’s what we expect:

Better deals…potentially: Rates have increased significantly over the last couple of years, as inflation rises, but the predictions for the future is that the Bank of England are moving to bring the base rate down, or at least hold it at around 5% as they work to reduce inflation to 2% by early 2025. The impact this has on mortgages rates is significant as deals with lower rates become more available on the market.

Fixed-Rate Appeal

However, the historically low rates of the last couple of years are not set to return and the unpredictability and significant rise in interest rates means that fixed-rate mortgages are expected to remain popular in 2024. Many borrowers will opt for the stability of fixed monthly payments, protecting themselves from potential future rate hikes. Longer-term fixed-rate mortgages are likely to continue to be popular.

Housing Market Forecasts

The housing market has experienced notable shifts in recent years, with changing preferences and demands. Here’s what you can expect in terms of housing market trends in 2024:

Continued Demand

Scotland’s housing market is expected to remain robust in 2024. Affordability and pent-up demand from previous years are likely to keep the market strong. Cities like Edinburgh and Glasgow remain popular for both buyers and investors, while Zoopla found that North and South Lanarkshire have seen 2.4% increase in house prices throughout 2023.

Supply Challenges

One ongoing challenge in the Scottish housing market is the limited supply of available properties. While new construction projects are underway, they may not be sufficient to meet demand, this could see continued price growth in desirable areas – bucking the trend in the UK market.

Affordability Concerns

Despite the strong demand, affordability remains a concern for many buyers, particularly first-time buyers. Government schemes and initiatives to support affordable housing look likely be a focus in 2024. However it is important to check which schemes are available to you and be aware that they often run out quickly.

Overall, the Scottish mortgage market in 2024 is likely to be characterized by increasing interest rates and continued demand for housing, particularly in urban areas. Borrowers should carefully consider their mortgage options, while keeping a close eye on market trends. It is more important than ever to get sound, qualified advice from a mortgage broker.

As always, we hope this helps! For more information on how ABC Mortgages can help you with your mortgage needs you can contact us through the information below.

Thanks,
Bill Muir
ABC Mortgages

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