Mortgage Market

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 […]

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

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

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