Mortgage Market

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

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

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

Mortgage Rates Reduced Following the election, the swift rise in swap rates led many lenders to increase their mortgage rates. This strategic move was designed to protect against potential future borrowing costs. However, as swap rates stabilised, lenders grew more confident in the market’s equilibrium. This newfound stability enabled them to reduce mortgage rates, benefiting

Base Rate Held At 5.25% Bank of England’s (BoE) Monetary Policy Committee (MPC) again voted 7-2 to maintain the current Base Rate at 5.25% for the seventh consecutive month despite inflation falling further to their 2% target. This decision was again followed, as in previous months, by initial promises of an imminent rate reduction. However,

Rate Cut In Doubt As Inflation Falls It was announced this week that inflation fell from 3.2% to 2.3%, slightly above the market forecast of 2.1%. Though smaller than expected, the drop is still positive as it is now lower than the Eurozone and US inflation figures. A rate cut in June now seems highly

Base Rate Held At 5.25% At todays Bank of England’s (BoE) Monetary Policy Committee (MPC) meeting they voted 7-2 to maintain the current Base Rate at 5.25% for the sixth consecutive month despite inflation falling further to 3.2%. This decision was followed, as in previous months, by initial promises of an imminent rate reduction. However,

Base Rate Battles Inflation while Swap Rates Shape Mortgage Costs Mortgage rates are frequently subject to speculation, especially when a notable shift in the Base Rate is currently at a 16-year high of 5.25%. This increase aims to combat inflation, which has significantly declined from 11.1% in October 2022 to 3.2% in March. The central

Rate Reductions Amidst Uncertainty In a bold move this week, numerous lenders have opted to reduce their rates, aiming to invigorate business volumes in the face of persistent inflationary pressures. Despite reports indicating stubborn inflation, these lenders are betting on rate reductions to stimulate demand and bolster their market share. The decision comes amidst widespread