The experts suggest that the real estate market has moved beyond the phase of rising rates and anticipate that some banks might reduce the rates for 5-year fixed-rate mortgages in the near future to attract more customers.

Despite the upcoming announcement of the latest base rates by the Bank of England this week, experts point out that lending institutions are expected to lower mortgage rates to attract homebuyers, regardless of whether the base rates remain at the expected level or not.

Nick Mendes, a technical manager at John Charcol, expressed optimism about the future, predicting that the rates for 5-year fixed-rate mortgages could drop below 4% by next summer, even if the base rate remains unchanged.

Similarly, Ranald Mitchell, director at Charwin Private Clients, stated, "By the summer of 2024, we are likely to see rates for 5-year fixed-rate loan products below 4%."

He further emphasized, "With improving market confidence, it is expected that loan costs will decrease in the coming months, and lending criteria will become more lenient."

Currently, Santander bank offers a 5-year fixed-rate mortgage product at a rate of 4.74%, which is considered one of the most competitive options available.

Media estimates suggest that assuming a loan size of £200,000 with a 25% down payment, a decrease in the rate to 4% would mean monthly savings of £62 and an annual savings of £744 for the homebuyer.

These forecasts and analyses indicate a potential downward trend in mortgage rates in the coming months, offering potential benefits to homebuyers. However, it is important to note that market conditions are uncertain, and the forecasts are for reference only, with individual loan terms and eligibility continuing to impact the actual rates.