What’s Ahead In 2025 As 2024 ends, the mortgage industry reflects on a year of challenges, including economic uncertainty and fluctuating interest rates. Looking ahead to 2025, the landscape remains complex, with refinancing pressures and mixed expectations about base rate changes. With nearly half of UK mortgages due for refinancing by 2027, borrowers and advisers […]
2025 Mortgage Market Predictions 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 »
Inflation falls To 1.7% The Office for National Statistics (ONS) has reported a sharp drop in inflation for September 2024. The Consumer Prices Index (CPI) rose by just 1.7% in the year to September, down from 2.2% in August.This is the lowest inflation rate in over three years, falling below the Bank of England’s 2%
UK Inflation Falls Below 2% Target, Pressure On Bank of England to Act Read More »
Mortgage Rates Rise Mortgage lenders are raising rates in response to global economic uncertainty and a consistent rise in swap rates. This shift intensifies market competition as lenders battle it with reduced profit margins to secure market share and build a strong pipeline ahead of 2025. Several factors contribute to this trend, including the increasing
Global Volatility Drives Up Mortgage Rates – What You Need to Know Read More »
Budget Anticipation The upcoming Autumn Budget is becoming a critical factor influencing financial markets. This budget is particularly significant as it arrives at a time when the UK is grappling with inflation, slowing economic growth, and the need for fiscal responsibility after years of pandemic-related borrowing. The budget’s impact on inflation, government debt levels, and
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Base Rate Held Bank of England’s (BoE) Monetary Policy Committee (MPC) voted 8-1 to maintain the current Base Rate at 5.00%. The BoE decision to hold its base rate at 5%, even after the US Federal Reserve (Fed) cut its base rate by 0.5%, could be due to several key factors reflecting differences in economic
Base Rate Held At 5.00% – Inflation Stands At 2.2% Read More »
Rate Reductions Continue Continued reductions in swap rates have further lowered lenders’ fixed-rate mortgage products. With increasing competition, lenders may continue cutting rates to undercut rivals and attract more customers. This decline in mortgage rates has not only heightened competition but also improved affordability for borrowers. As competitive pressures drive borrowing costs down, consumers benefit from
Enhanced Affordability For Borrowers As Swap Rates Fall Below 4% Read More »
Base Rate Reduced To 5.00% The Bank of England (BoE) has cut interest rates from 5.25% to 5%, marking the first reduction since the pandemic began. The decision was close, with the BoE’s monetary policy committee (MPC) voting five to four in favor of the cut. Policymakers have been trying to manage inflation, which was
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