Interest rates rates have been declining since August and the average mortgage rate currently is 5.95 per cent for a two-year fixed and 5.57 per cent for an average five-year fixed mortgage, according to property investment mogul Jonathan Veers.

This is down from 6.85 per cent and 6.37 per cent, respectively, but remains higher than the UK’s current base rate of 5.25 per cent.

Analysts are betting on the Bank of England slashing rates in the later half of the 2024 with experts urging mortgage holders to be patient.

Mr Veers, the owner and operational director at The Buy to Let Platform, cautioned current homeowners about remortgaging or negotiating their fixed-rate deal before rates drop further.

He said: “Although there are some mortgage deals under four per cent, such as HSBC’s, I don’t expect this to be a standard until the end of 2024 or even beyond.

“Therefore, those who are waiting for a lower rate to remortgage or buy their home may be waiting a while before finding a mortgage rate this low.

“It is recommended that first time buyers try to get on the ladder and switching deals when the right time comes.”

Despite this, the property expert acknowledged that those looking to get on the housing ladder are more likely to “benefit” in the immediate future.

Mr Veers added: “Based on these predictions for the year to come, prospective buyers may be the ones who benefit in the short term, even if they take on a mortgage with higher interest.

“This is because there is currently less competition on the market, a potential for negotiation on purchase prices (five to 10 per cent off), and the opportunity to enter the market before prices drop further.

“When considering long term benefactors, homeowners aiming to remortgage early might benefit by locking in lower rates amid anticipated rate decreases, ensuring stability and potential savings.”

The Bank of England’s Monetary Policy Committee (MPC) will next make an announcement regarding interest rates on February 2, 2024.