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What impact will the Bank of England holding interest rates have on new buyers? Matt Smith, from Rightmove says "While many will have hoped for a surprise cut today, a hold was expected by the market - and therefore, this certainty could still lead to mortgage rates trickling down rather than up over the next few weeks, which is really what home-movers are after." Hina Bhudia, a partner at Knight Frank Finance, predicts deals for two- and five-year fixed rate mortgages are likely to remain flat at about 4.5% and 4.8% respectively - but she says "sentiment will turn quickly when the first rate cut comes into view". Where you hoping for interest rates to come down or do you view this stability as a positive? #NewHomes #InterestRates #deverellsmith

Is the Bank of England's interest rate cut a sign of opportunity or a warning for investors? The Bank has made a significant move by cutting interest rates for the first time since 2020. The key rate has been lowered to 5%. This will have implications for investors, as cash returns will fall, and other asset classes would be expected to rise in time as more liquidity is added to the monetary system. This rate cut comes after a close vote among policymakers. While this move may provide relief to mortgage holders and businesses facing the rising cost of borrowing, it also signals a cautious approach, with future cuts expected to be gradual. While potentially beneficial in some areas, this rate cut may also raise concerns about the underlying health of the economy. Do you see it as an opportunity to diversify or a moment to exercise caution?

🎉 Great news! The Bank of England has announced a reduction in interest rates to 5.00%! 📉✨ This move acknowledges the efforts to curb inflation and stabilize the UK economy. After a long period of rising rates, which peaked at a 16-year high of 5.25%, this reduction marks a positive shift. Want to know how this change affects you? Stay informed and share your thoughts below! 💬👇 #Economy #BankofEngland #InterestRates #Inflation #FinanceNews https://lnkd.in/eQ2bvpme

📣 Breaking News: Bank of England's Base Rate Decision! 📣 The Bank of England’s Monetary Policy Committee (MPC) has decided to keep the base rate steady at 5.25% for yet another month, continuing the trend since August 2023. 💼 MPC Vote: 7-2 in favor of maintaining the rate. Despite the promising news that inflation has finally hit the bank’s target of 2% and unemployment is at 4.4%, many had predicted a potential rate drop—the first since before the pandemic. However, the MPC's decision reflects a cautious approach to ensure economic stability. 🔍 Expert Insight: “While today’s decision to maintain the rates might be tough to accept, recent trends among lenders suggest we are nearing the end of the period of high-priced fixed rates. However, borrowers will need to be patient a bit longer before we see high street lenders competing for sub-4% fixed rates." 🏡 Advice for Mortgage Holders: “For those approaching the end of their fixed-rate period, it is advisable to start exploring remortgaging options at least six months before the current deal expires. Taking this proactive approach ensures you have ample time to arrange new terms, facilitating a smooth transition when your current product ends." First Step: Review your current mortgage terms, focusing on the loan balance. What are your thoughts on this decision? 💬 Comment below! #BankOfEngland #MonetaryPolicy #Economy #Inflation #Unemployment #FinanceNews #MortgageAdvice 📊 Stay tuned for more updates! 📊

As widely expected, The Bank of England MPC has voted to maintain base rate at 5.25%. However, we were keen to see what comments were made along with the announcement and these are very encouraging indeed. Commenting on the decision, Mr Bailey said: “We’ve had encouraging news on inflation and we think it will fall close to our 2pc target in the next couple of months. Financial markets have already upgraded their forecasts for the first rate cut to June rather than the previously suggested August meeting. Andrew Bailey has said interest rates will need to be cut to help the Bank of England keep inflation at its 2pc target, hinting that base rate reductions could very well be deeper and faster than 0.25% chunks. He said: “With the progress we’ve made, to make sure that inflation stays around the 2pc target, that inflation will neither be too high nor too low, it is likely that we will need to cut Bank Rate over the coming quarters, and make monetary policy somewhat less restrictive over the forecast period, possibly more so than currently priced into market rates.” As you know, getting inflation down is the key to reducing mortgage rates. Baileys comments along with those of Deputy Governor Dave Ramsden are now pointing to an even larger drop in the rate of inflation to be announced on 22nd May. Inflation currently stands at 3.2% and markets consensus was for a drop to between 2.5-2.7%, however, following todays comments, it seems highly possible that the Banks target of 2% may have already been met. Ramsden voted for a rate cut in May but was in the minority. A cut of at least 0.25% in June now looks very likely indeed. The below chart from BoE shows their forecast for UK inflation for the next 3 years and as you can see, they are predicting stability with inflation remaining at or around target so whilst we are not likely to return to sub 1% mortgage rates, the new normal for prime mortgages would probably be 2-3% going forwards. There is some light at the end of the tunnel!

The Bank of England has cut the cost of borrowing, reducing headline interest rates from 5% to 4.75% – a move that was widely anticipated. It is the second interest rate cut this year. 📰🔎

Today, the Bank of England announced a significant reduction in interest rates from 5.25% to 5%. This decision, supported by a narrow majority among policymakers, marks the first cut since the COVID-19 pandemic. The move comes amid easing inflation pressures, with the 12-month CPI inflation dropping to 2.0% in May. This cut is expected to impact mortgages, savings, and borrowing costs, providing relief to consumers and businesses alike. https://lnkd.in/ep9MaPqz #BankofEngland #InterestRates #Economy #FinanceNews #Inflation #MonetaryPolicy

The Bank of England has opted to hold the base rate at its current level, meaning interest rates will finish the year at 4.75 per cent. The decision will come as little surprise given that yesterday, the Office for National Statistics reported that inflation rose to 2.6 per cent - above the Bank of England target of 2 per cent. #ukeconomy #ukgovernment #interestrates https://lnkd.in/e5KeMFqh

The Bank of England has cut the cost of borrowing, reducing headline interest rates from 5% to 4.75% – a move that was widely anticipated. It is the second interest rate cut this year. 📰🔎

Finally! The Bank of England has cut rates to 5%, the first drop since March 2020 although it was by a narrow 5-4 vote by the Monetary Policy Committee. Will this bring back consumer confidence which is critical to the growth of the Uk economy? A number of banks have already cut their mortgage rates and this will help those who may be coming off their fixed rates this year, especially if there are further cuts before December. However, the key will be the impact on inflation given the balancing act between cutting the cost of borrowing to boost spending and keeping inflation rates at the current 2% target level. We'll find out more over the next few months as to the direction of travel for the UK economy I'm sure but this is hopefully the start of something good for the UK economy after two years of high inflation, high interest rates and low consumer and business confidence. https://lnkd.in/e-ZHT-gT