Interest Rates

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 […]

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 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

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

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

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

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