Guest post: mortgage rate update

Guest post: mortgage rate update

Top view of laptop, pad of paper, pen and graph with data sitting on table

From Squirrel's CEO John Bolton:

"We have an OCR of 0.25% and banks still paying 2.50% on a term deposit. That’s why we haven’t seen much of a fall in the fixed housing rates. The one-year mortgage rate dropped from 3.29% to 3.05% and maybe we will see mainstream banks as low as 2.95% in the near future.

That is as low as rates will go

Lower margins and higher credit losses will put a floor under any further rate competition. I would argue that banks are focusing less on competition and growth, and their story will now be centred around credit management and margin protection."

View Squirrel's full article here.

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