Is The Mortgage War Over Already? - UK House Price Crash 2024

7th February 2024

Why are BANKS suddenly INCREASING mortgage interest RATES and withdrawing some mortgage offers entirely? And what impact will this have on UK house prices in 2024? The UK housing market is in big trouble and a fall in mortgage rates was about the only thing that could have prevented a full blown UK housing market crash.

During the first few weeks of 2024, a so called "mortgage war" broke out amongst UK mortage providers. As market swap rates dropped under 4%, lenders slash their mortgage rates in a bid to win customers. This trend has recently come to an abrupt end with swap rates soaring by close to 20% from their recent lows.

Fears surrounding a UK housing market crash let to a huge slow down in the UK property market last year. This has left many mortgage providers desperate to lend.

Lower rates will lead to an increase in activity in the housing market, however, more liquidity could also lead to an acceleration of the UK house price crash as more properties come to market and increase supply.