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.

How does this impact me?