What You Need To Know The Bank of England (BoE) reduced the Base Rate by 0.25%, bringing it down to 4.00% – It’s lowest level since March 2023. This is the fifth cut since August 2024 and was narrowly approved in a 5–4 split vote, marking the first time in history that the Monetary Policy […]
BoE Cuts Base Rate To 4% – Why Now? Read More »
Global Risks Reflect Cautious Approach The Bank of England held the base rate at 4.25% this week, citing the need for more evidence that inflation is falling sustainably. While headline inflation has eased to 3.4%, it remains above the 2% target, with services inflation and wage growth still exerting upward pressure. The Monetary Policy Committee
BoE Holds Rates as Inflation Slows – What It Means for Mortgages Read More »
Further Rate Cuts Anticipated The Bank of England reduced the base rate from 4.5% to 4.25% on 8 May 2025. This 0.25% cut directly benefits approximately 600,000 tracker mortgage holders, who can expect average monthly savings of around £29. Those on standard variable rate (SVR) mortgages may also see reductions, though the extent depends on
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Stability Until May Predicted The Bank of England has maintained the base rate at 4.5%, aligning with economists’ expectations amid global uncertainties, including U.S. trade policies and domestic economic challenges. Inflation has decreased from a peak of 11.1% in October 2022 to 3%, but remains above the 2% target. The UK economy grew by just
Bank of England Holds Base Rate at 4.5% Amid Global Uncertainty Read More »
Mortgage Rates Drop – Will It Last? Recently, many lenders have reduced their fixed mortgage rates despite ongoing rises in swap rates. This apparent contradiction arises from lenders competing aggressively for business, temporarily cutting margins to attract borrowers. However, persistent inflation remains a significant concern. Inflation rates continue to exceed Bank of England targets, prompting markets
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Competition Intensifies The UK mortgage market is becoming increasingly competitive, with lenders reducing rates to attract borrowers and expand market share. Despite swap rate fluctuations, banks and building societies are aggressively pricing mortgages to meet lending targets. With housing transactions below pre-pandemic levels and affordability concerns persisting, lenders are using lower rates to retain customers
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Base Rate Reduced – 4.50% Today, the Bank of England reduced its base interest rate by 0.25% to 4.5%. This is the third cut since August 2024 and is aimed at boosting the economy, which has been struggling to grow. The decision was made as inflation is expected to rise to 3.7% in the short
Bank of England Cuts Base Rate – What It Means for You Read More »
Base Rate Held – 4.75% The Bank of England’s Monetary Policy Committee (MPC) has decided to keep the Bank Rate steady at 4.75%. However, the vote was split, with six members supporting the hold and three advocating for a 0.25% reduction to 4.5%. This divergence highlights differing views on the current economic landscape. The decision
Base Rate Stays At 4.75% As Inflation Climbs To 2.6% Read More »
Base Rate Cut – Mortgage Impact With inflation currently below the Bank of England’s 2% target, the Bank had little choice but to reduce the base rate by 0.25% to 4.75%. This cut will affect mortgage borrowers in different ways, depending on their mortgage type. For those on variable or tracker mortgages, which track the
Bank of England Cuts Base Rate to 4.75% – What This Means for Your Mortgage Read More »
Swap Rate Spike Following Rachel Reeves’ Budget announcement, swap rates—a key determinant of fixed-rate mortgage costs—have surged significantly. Two-year swap rates hit 4.51%, reflecting higher expectations for future interest rates. If this trend continues, mortgage rates could rise, prompting lenders to prepare for rate increases. Given this volatility, it’s crucial for homeowners to review their
Will the Budget and Swap Rate Spike Trigger Mortgage Rate Increases? Read More »
