Over 75% of homebuyers are being offered improved mortgage deals after they begin the property buying process thanks to falling rates, a conveyancing lawyer has said.
Simon Nosworthy of Osbornes Law has observed many buyers are changing their mortgage weeks before completion because brokers are coming up with better deals.
His comments come as Moneyfacts revealed, in the last month, the price of a typical two-year mortgage rate has fallen by the most significant margin in six months and to a level not seen since September 2022.
Indeed, lenders have been cutting prices for the last few weeks, meaning borrowers are benefiting from a competitive market.
And, it would appear, it’s having a big impact on borrowers’ experiences.
Nosworthy, who is head of residential conveyancing at Osbornes Law, said: “Never in my time as a property lawyer have I seen so many clients change their mortgages during the buying process.
“More than three quarters of clients are coming to me and saying that their broker has been in touch with an improved deal. That’s unheard of.”
Since the infamous mini-budget in September 2022, which sparked economic turmoil and sent mortgage rates soaring, borrowers have faced typical rates on their mortgage of around 6%.
Thanks to four Bank of England base rate cuts since August 2024 mortgage rates have been coming down. And, in the last few weeks, some of the biggest lenders have offered rates below 4%.
The speed at which price cuts have been coming onto the market mean many borrowers would be seeing better rates on offer as they go through the conveyancing process. And brokers are helping to pass these on to their clients.
Nosworthy added: “This is the best time to be a buyer since the Liz Truss budget threw the mortgage market into turmoil.
“There is a sense now that buying power is bad and with properties on the market for longer and signs that prices have levelled out it’s all in the buyer’s favour. It’s a perfect storm of positive factors for buyers.”
Simon added: “If people were biding their time and delaying getting into the property market they might want to reconsider as we are already seeing an uptick in instructions as there is clearly motivated purchasers out there who realise that the time to act is now.
“We certainly aren’t seeing sellers saying that they won’t agree to buyers demands and put their house back on the market so purchasers can take advantage of that.”
“It should also be noted that the Spring and Summer time is traditionally a busy period in the property market so buyers should move quickly to not only secure their new property but also the best property professionals such as solicitors and surveyors to assist them in achieving their goal.”
