Key Facts

  • The Co-operative Bank has become the front-runner in 2024 mortgage rate alterations, implementing a blend of increments in shorter fixed rates and deductions in longer rates.
  • They have also reduced term deposit rates for one year and longer durations.
  • Despite 2023 experienced a dearth in home listings and low sales transactions, the market firmed up towards the end of the year, and the listing inventory currently stands at 23 weeks at present sales rates.
  • The Co-operative Bank has slimmed its attractive one year’s ‘special’ rate from 6.20% to 6.15%, which is still competitively higher than any main bank.
  • While more banks are likely to make some changes during this rate cycle, the adjustments are projected to be relatively moderate.
  • Both a mortgage calculator and break fee calculator are mentioned as useful resources for homeowners to calculate and assess their options.

Article Summary

The Co-operative Bank has led the way in the mortgage rate changes in 2024 by increasing some shorter fixed rates, while trimming its longer rates. A cut in its term deposit rates for terms of 1 year and longer has also been announced. This move matches the offers by major banks.

The changes have been made in the backdrop of a listings dry spell and low numbers of sales transactions in the housing market in 2023. However, the market did see a firming up at the end of 2023, and the current listing inventories stand at 23 weeks at existing sales rates.

Despite a reduction, the Co-operative Bank’s one-year ‘special’ rate stands at 6.15%, which is more competitive than any other main bank. With more rate alterations expected in this rate cycle, it is unlikely that Co-operative Bank will be the last bank to announce changes. However, any looming adjustments are predicted to be moderate.

Homeowners and potential investors are advised to negotiate and shop around, as most banks are likely to discount their carded home loan rates for customers with strong financial profiles. The use of tools such as mortgage and break fee calculators could also provide valuable insight into the changing home loan rates.

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