Independent Mortgages Direct NE

Will the Budget and Swap Rate Spike Trigger Mortgage Rate Increases?

Swap Rates Rise

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 options now more than ever. Seeking advice can help navigate these changes and find the most competitive rates available. Taking action now could lead to long-term savings.

Big Week Ahead: BoE Meeting and U.S. Election Set to Shape Interest Rate Decisions

The Bank of England (BoE) faces a challenging decision on interest rates, and a big week lies ahead with the next BoE meeting on November 7 and the U.S. election on November 5. While many hope for rate cuts soon, recent government policies and economic forecasts suggest that lowering rates meaningfully may take longer than initially expected.

The BoE’s main job is to control inflation, usually by adjusting the base interest rate. Right now, inflation is still above target, and recent government policies could drive economic activity and spending even higher, potentially pushing prices up. This puts the BoE in a difficult position: they must support economic growth without letting inflation remain too high. With these major events on the horizon, this week will be pivotal for economic decisions and market responses.

Royal Exchange Bank of England London Picture

4th November Swaps

1st November Swaps

11th October Swaps

11th October Swaps

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