As first seen in our September 21st 2023 market update newsletter.
Finally some positive news to report!
Following over a year of consecutive increases to the base rate, the Bank of England has today frozen the rate at 5.25%. At the start of the week, the Economists were predicting a certain increase of at least 0.25% but things can change fast and following a further reduction in inflation, the Monetary Policy Committee has felt able to leave the rate where it is, bringing some welcome relief to homeowners.
As I have explained previously, the base rate is just one aspect that affects the pricing of fixed rate mortgages. Banks rely on “swap rates” which predict how the market is going to perform in the future. These “swap rates” have been following for several weeks now, but the even better news for borrowers is that they have been factoring in a base rate rise that in the end did not materialise.
This means we now expect fixed rate mortgage rates to be dropping over the coming days, so if your remortgage is due, you are a First Time Buyer with your plans on hold or a “next stepper” who has been playing watch and wait to see what was going to happen next, you need to engage with us NOW to see how today’s news affects your payments.