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 term, mainly due to higher energy costs. The Bank predicts interest rates may continue to fall slowly, potentially reaching 4.25% by the end of the year.
For mortgage borrowers, this could mean lower interest rates in the future, offering potential savings on repayments. However, lenders may take time to adjust their rates due to several economic factors.
Swap Rates Fall As Forecasts Improve
Since their peak before Christmas, swap rates have fallen due to lower inflation expectations, shifting interest rate forecasts, and a slowing economy. Inflation is easing faster than expected, reducing pressure on the Bank of England (BoE) to keep rates high. Markets now anticipate rate cuts in 2025, lowering borrowing costs and pushing swap rates down. Weaker economic growth and signals from global central banks have also contributed. This is good news for mortgage borrowers, as falling swap rates allow lenders to offer cheaper fixed-rate deals, creating opportunities for those looking to secure a lower mortgage rate.
6th February Swaps
19th December Swaps
Late Appointments Now Available
With flexible appointments available until 7pm, we make it easier than ever to fit mortgage advice into your busy schedule. With todays reduction in the base rate and 2025 predicted to be on of the busiest years yet, securing your spot early is essential.
Don’t wait to take control of your finances and start the year with confidence and peace of mind. Contact us today to explore your options and ensure you’re set up for success. Lets make your property goals a reality.
