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Speculation is rife over whether the Bank of England will cut the base rate next month, but borrowers may already be noticing some cheaper deals. "Persistent inflation" is the main reason for the potential cut in the 5.25% interest rate that has been maintained for nearly 12 months, according to Huw Pill from the Monetary Policy Committee (MPC). Pill noted that wage growth and inflation in the services sector remain above target levels. He stated to the Asia House thinktank in London, "I think it’s still an open question on whether the timing for a rate cut is now." Following his comments, financial markets adjusted the odds of a base rate cut to 50/50. Another Call for No Base Rate Cut: Similarly, senior Bank of England policymaker Jonathan Haskel, also an MPC member, emphasized that the UK's inflation battle is ongoing and "remains incomplete." He advised maintaining the base rate until conditions change. Haskel warned that while the government's 2% inflation target has been met, it is likely to rise again. "The labour market continues to be tight, and I worry it is still impaired. I would rather hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably," he said at King's College London. But Lenders Are Changing Course: Despite the influence of the Bank of England's base rate, mortgage lenders are also guided by swap rates and market competition. Recently, many lenders have been reducing their rates, partly in response to the general election's conclusion. Uswitch's mortgage expert, Kellie Steed, observed, "This week we’ve seen lenders respond to their growing expectation of a bank rate cut in August, and likely the election results, with a host of rate cuts across 2 and 5-year products." Although these cuts haven't significantly impacted overall average rates yet, the average 2-year fixed rate among the six biggest lenders has fallen by just over 1 percentage point, and the average 5-year fixed deal by 0.08%. More lenders are expected to follow suit as the month progresses. Nationwide and Skipton have already announced cuts of 0.3% and 0.33%, respectively, for both residential purchase and remortgage ranges. In the buy-to-let market, Uswitch recorded rate reductions for two-year fixed rate products at 75% loan to value (LTV). The average rate across all lenders dropped by 0.09% month-on-month, bringing it to 5.55% as of July 9th. The six big lenders, on average, decreased their buy-to-let rates by 0.13%, bringing the average to 5.32%. The lowest rates for buy-to-let two-year fixed products remained at 3.74%, unchanged from last month. Among the six big lenders, the lowest average rates are now 4.63%, down by 0.05%. Specialist buy-to-let lenders such as Aldermore, BM Solutions, Leeds Building Society, and Nottingham Building Society have recently reduced their rates, indicating increased competition in the market despite base rate speculations.

Interest rate freeze: what you need to know! 👇 The Bank of England has opted to hold interest rates at 5.25% for the seventh month in a row, in a decision they described as "finely balanced." ⚖️ What does this mean for you? For homeowners and potential buyers, this period of high interest rates can be challenging. However, with the prospect of future rate cuts, there is room for optimism. Lower inflation and the potential for decreasing interest rates can create more favorable conditions for mortgages in the near future. Is a rate cut coming? There's a chance! The Bank is waiting for more data to confirm if inflation is truly under control. The Guardian predict a possible cut in August. ⏳ At Q Financial Services, we understand that navigating the complexities of the UK mortgage market can be challenging. Our team of qualified advisors stays up-to-date on the latest rate movements and can help you find the right mortgage product for your individual needs. #QFinancialServices #Telford #Wellington #Shropshire #YourShropshireBasedFinancialProvider #Telfordmortgages #ShropshireCommercialFinance #LoveWellington

Bank of England reveals interest rate decision The Bank of England’s monetary policy committee has held base rate at 5.25% for the sixth time in a row. The news was widely expected, although some agency industry figures held out a distant hope that rate cuts may begin this month, despite the headline rate of inflation running at 3.2%, so well above the government target of 2%.   Emma Wall, head of investment research and analysis at Hargreaves Lansdown, says Bank of England governor Andrew Bailey had not given any "forward guidance" on a change, which would be expected if he felt a drop was on the cards.   But she adds that “rate cuts will be coming in the UK, and in Europe, within the next couple of months" with yesterday’s surprise move by the Swedish national bank to cut rates an indication of what is to come in this country in June and beyond.   According to Rightmove, the average five-year fixed mortgage rate is now above 5% for the first time since January, while average two-year fixed mortgage rate currently stands at 5.41%, up from 4.84% a year ago. A spokesperson for independent mortgage broker John Charcol says: “Until a reduction in the bank rate occurs, there will be a period of uncertainty that prompts markets to speculate and continually adjust their forecasts. This situation is expected to lead to an ongoing phase of repricing by lenders.    “Lenders are continually adjusting their profitability margins in response to changes in funding lines and shifts in market competition. This adjustment process is a direct reaction to the uncertain financial environment, as lenders strive to maintain their competitive edge while managing their financial risks. “Swaps have reduced slightly in recent days as markets price in a rate reduction, which should pave the way for lenders to reprice marginal decreases over the next fortnight.”   Want SAB to manage anymore of your property portfolio? Get in touch #propertymanagement #propertymarket #property

Inflation has fallen to the Bank of England’s target level of 2%, but as widely expected, Base Rate was held yesterday at 5.25%. The big question is, now that inflation has fallen, when will Base Rate fall, and what impact has it had on Mortgage rates?! This article suggests The Bank of England has opened the door to cutting interest rates in August. Will it happen? So much can of course change, but what does it mean for your Mortgage? So many clients have paused their borrowing, waiting for a base rate drop to come, but the reality is that Mortgage fixed rates are not directly linked to the current Base Rate. But more so link to “Swap Rates”, which in short are more of a prediction as to what the average base rate will be over 2 or 5 years for example. Which is partly why 2 year fixed rate Mortgages have generally been more higher than 5 year fixed rate Mortgages, with the expection that Base Rate will over the next few years. What are swap rates? Swap rates are the interest rates that banks use to swap, or exchange, fixed-rate payments for variable-rate payments. This is important for mortgage lenders because it allows them to lock in a fixed interest rate for a period of time, even though they may be funding their mortgages with variable-rate deposits. How do swap rates affect mortgage rates? When swap rates rise, mortgage rates tend to follow. This is because lenders need to pay more to borrow money, and they pass those higher costs on to borrowers in the form of higher mortgage rates. What are the factors that affect swap rates? There are a number of factors that can affect swap rates, including: The Bank of England base rate: The Bank of England base rate is the interest rate that banks charge each other for short-term loans. When the base rate rises, swap rates tend to rise as well. Inflation: Inflation is a measure of how much prices are rising in the economy. When inflation rises, it is expected that interest rates will rise in the future, which can lead to higher swap rates and hence higher fixed rates available for Mortgages. When swap rates fall, as they have been in the last few days its an indication that lenders may look to lower their fixed rate Mortgages Whilst we can’t predict future rates, we can help you understand the options available to you today, and help you find the best mortgage for your needs. Your home may be repossessed if you do not keep up repayments on your Mortgage

Interest rate cut: What this means for you Yesterday, the Bank of England cut lowered interest rates to 5%. So, what does this mean if you have a mortgage? Read this article to learn more. For more financial news and articles, follow Sterling & Law Leicester.

In response to the Bank of England holding the base rate at 5.25%, Nick Leeming, Chairman of Jackson-Stops, comments: "The Bank of England's decision to maintain the base rate, even as inflation has fallen back to the 2% target for the first time in nearly three years, is a testament to the cautious yet pragmatic approach being taken. "The Bank's prudent hold fortifies market stability, bolstering the positive trajectory witnessed in the first half of the year - with rising viewings, listings, and buyer interest recorded across our network of offices. This continuity primes the market to capitalize on potential rate cuts in the coming months. “While everyone in need of a mortgage would prefer rates to fall, it’s key to remember the bank is playing the long game here. This decision should instil confidence among both buyers and sellers, as it suggests a commitment to maintaining a stable environment for housing transactions. Buyers can proceed with their searches and secure mortgages without the uncertainty of fluctuating rates, while sellers can feel reassured that the market conditions remain favourable for attracting potential purchasers. “A pivot towards lower rates later this year, even if only minor, would help to ease affordability constraints at the lower end of the housing market and help to ensure chains don’t break down once sales have been agreed. We eagerly await the next decision!” https://lnkd.in/d7ahUy95

The Bank of England has made the decision to hold interest rates at 5.25% but why does this matter? Interest rates in the UK are a pivotal component of the country's economic landscape, influencing everything from mortgage payments to business investments. Here's a brief look at how these rates affect the economy and individuals: What Are Interest Rates? Interest rates, set by the Bank of England, represent the cost of borrowing money. These rates can significantly impact the economy by influencing consumer spending, saving habits, and overall economic growth. Current Trends and Implications: Mortgage Payments: Higher Interest Rates: When the Bank of England raises interest rates, borrowing costs for mortgages increase. This leads to higher monthly payments for homeowners, potentially slowing down the housing market as fewer people can afford to buy homes. Lower Interest Rates: Conversely, when interest rates are lowered, mortgage payments become more affordable. This can stimulate the housing market by making home loans cheaper. Savings and Investments: Higher Interest Rates: Higher rates can benefit savers by providing better returns on savings accounts and fixed-income investments. However, they can also deter borrowing and spending. Lower Interest Rates: Lower rates encourage borrowing and spending but provide less incentive for saving. Business Investments: Higher Interest Rates: Can lead to reduced business investments as the cost of borrowing capital increases. Lower Interest Rates: Encourage businesses to invest and expand, fostering economic growth. Economic Impact The Bank of England uses interest rate adjustments as a tool to manage inflation and stimulate economic growth. During periods of high inflation, raising rates can help cool down the economy. In contrast, during economic slowdowns, lowering rates can help boost spending and investment. In conclusion, interest rates are a crucial lever in the UK economy, affecting everything from personal finances to national economic performance. By understanding these impacts, individuals and businesses can make more informed financial decisions in response to changing interest rates.

📉 Bank of England Cuts Interest Rates: What Does It Mean for the Property Market? 🏡 The Bank of England has recently announced a reduction in interest rates, and this move is bound to have significant implications for the property market. Whether you're a homebuyer, investor, or real estate professional, understanding how these changes can impact you is crucial. We've broken down the key points and explored how this could influence everything from mortgage rates to property demand. 👉 Read our latest article to learn more: Bank of England Cuts Interest Rates - Full Article Stay informed and stay ahead!

The Bank of England's most recent base rate review was in June where the rate was held at 5.25%. The next review is scheduled for next Thursday 1st August and while many are hopeful for a rate reduction, it remains uncertain. https://lnkd.in/eupmmHrc Don't miss our monthly vlog this Friday, where Leo will share personal insights into the possible base rate update and the current mortgage market. We'll also update you on how the base rate after August 1st will impact mortgage rates. If you have any questions about your mortgage in the meantime, please reach out through any of the channels below. 07984 864286 info@goldwaterfinancial.co.uk *Any advice is subject to individual circumstances. Always seek independent advice* #MortgageRates #bankofengland #interestrates #HomeBuying #mortgageadvice #FinancialAdvice

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