Are you keeping a close eye on interest rates?

If you’re like many homeowners, you’re probably aware of the constant fluctuations in interest rates and how they can impact your mortgage.

In a recent decision, the Bank of England’s Monetary Policy Committee voted 5-4 to maintain the Bank Rate at 5.25%, defying expectations of a 15th consecutive rise to 5.5%.

But what does this mean for you and your mortgage?

In this blog, we’re going to explore the recent news about interest rates and explain how it will affect homeowners and new home buyers. We’ll also share how we help people every day by providing our friendly and knowledgeable mortgage broker service.

A Surprising Twist in the CPI Inflation Tale

Just when everyone thought interest rates were bound to rise, the latest data from the Office for National Statistics (ONS) delivered a surprise. In August, the Consumer Price Index (CPI) inflation saw an unexpected fall to 6.7%. This drop in the twelve-month CPI inflation, from 7.9% in June to 6.7% in August, was 0.4 percentage points below what was anticipated at the time of the Committee’s previous meeting.

The MPC (Monetary Policy Committee) acknowledged that CPI inflation is projected to decrease “significantly further in the near term” thanks to lower annual energy inflation and continuing reductions in food and core goods price inflation.

Breathing Room for Mortgage Holders

This decision to keep Bank Rate steady has been welcomed by the mortgage industry. If you’re due for a mortgage renewal in the upcoming months or are on a tracker mortgage, you can breathe a sigh of relief.

Variable Rate (SVR) and tracker rate holders are also very pleased with the news and hoping for decreasing interest rates by year-end. This could potentially boost the property market and help prevent a recession.

We’ll be keeping an eye on the rate throughout the year, as always, to ensure that we’re available to help out each and every one of our clients.

Interest Rates – Good News for Borrowers

Mortgage prices are falling, and with the expectation that the Bank of England is nearing the peak of its rate increases, borrowers can find comfort in the fact that mortgage products are becoming more attractive.

The decision has been a welcome surprise for most, as the market has been extremely volatile in recent times. Borrowers have grown accustomed to historically low rates, and a base rate of 5.25%, while not abnormal, signifies a period of adjustment ahead.

It’s crucial for lenders and brokers to provide clarity and assurance to borrowers, helping them enter the property market confidently, and that’s what we do to help our clients out each and every day.

A Breather for Borrowers

The decision has brought more relief to borrowers as consecutive rate rises over the past year have been challenging, and this pause allows borrowers to catch their breath.

With many lenders reducing their fixed rates, the outlook is promising. Rates are expected to improve further, and sub-5 per cent five-year fixed-rate mortgages may become available in the future.

Take Action with Mortgage Saving Experts: Mortgage Brokers for You

If you’re eager to learn more about how these interest rate developments affect your mortgage and want to explore your options, Mortgage Saving Experts is here to help.

Our team of mortgage experts will provide you with personalised advice and guide you through the mortgage landscape, ensuring you make informed decisions for your financial future. We’re committed to making the process as easy as possible by demystifying tricky mortgage terminology and providing a transparent service.

We’ll guide you through the process from start to finish, ensuring that you receive the care and attention you deserve. We’re a family business and understand that everyone and every situation is different, so we tailor our service to meet your needs exactly.

Don’t let market uncertainties leave you in the dark. Reach out to Mortgage Saving Experts today on 01273 738 072 and take control of your mortgage journey. Your dream home or financial goals may be closer than you think!