Banks Battle It Out Over Interest Rates

As first seen in our October 2nd 2023 market update newsletter.

Following last month’s interest rate hold – Fixed Rate Mortgages are finally dropping! 👏

Until perhaps within 48 hours of the Bank of England’s decision to freeze interest rates the week before last, it looked like we were in for yet another increase in the base rate. However, everything changed at the last minute with some unexpectedly positive news on inflation and although it was a close vote (5-4), the Governor Andrew Bailey had the casting vote and we got “no change”.

The interesting thing however is that Lenders had been “pricing in” a rate rise and when it didn’t come, we saw an immediate reduction in some of their fixed rate offerings. Indeed, we are now down a good 1% from the peaks we saw a few short months ago.

If you have been putting your plans to move on hold waiting for rates to drop, then it’s now time to re-engage with us and see how your monthly payments will be affected. It looks like the peak has been reached and we should now see some of the pent-up demand in the market come to fruition.