The Bank of England (BoE) Monetary Policy Committee voted again today to hold the Base Rate at 5.25% for the second consecutive month. With signs of core inflation and the slide on Sterling both easing, concerns are turning to the risk of a slowing economy and the effect this is all having on the jobs market in an attempt to make sure the current economic slowdown does not turn into a recession.
The decision to hold the UK Base Rate again aligns the UK with yesterday’s decision made by the US Federal Reserve, which also had its rate and long-term low growth predicted in the EU.
Have Mortgage Rates Peaked?
You can see from the Swap Rate tables below that there has been a gradual reduction from September to the present, which explains the recent positive adjustments lenders made last month to mortgage rates on offer. However, it also highlights the speed at which rates are moving and the fragility of a market that could impact either way depending upon the next steps taken by the Government and the Bank of England.
When looking at the information available, it would be an unlikely decision if the Bank of England were to raise the Base Rate further, while comparing Swap Rates over the last six months would indicate mortgage rates may stay the same. Still, recovery will be protracted, so we should accept and base our mortgage decisions on rates remaining at this level for some time.
We are booking new products six months before the end of the current mortgage and then reviewing them monthly until completion. If you want your mortgage reviewed and want to benefit from the latest rate reductions, call 0800 0350095 or click on the button below to schedule a callback.