Average fixed mortgage rates edge down but ‘too soon’ to signal a turning point

David Fell, lead analyst at Hamptons, said: “Bumper numbers of borrowers locked in new mortgage deals during March, just as rates started to move up.

“Anyone with a fixed-rate mortgage expiring in the next six months moved quickly to secure a new deal in the face of daily price rises.

“The early signs suggest that April may be quieter, with borrowers holding off as long as possible in the hope that rates may have peaked and are on their way back down.

“If rates do begin to drop, lenders will get increasingly busy as borrowers look for another product at a more competitive rate.

“Higher rates have cut the number of people buying with 5-10 per cent deposits in recent weeks, as monthly payments may no longer be affordable.

“Some first-time buyers have postponed starting their house hunt, waiting either for rates to drop back or to save the larger deposit required to make repayments more affordable.”