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A Future Mortgage Rate Cut?


It has been a whirlwind start to the New Year with a welcome boost in activity.

Mortgage lenders have been quick off the blocks to offer enticing new rates to borrowers even though the environment is already highly competitive. What is more interesting is the noises coming out of the Bank of England that suggests that the next move for the Bank of England’s rate-setting Committee could well be a further cut.

Gertjan Vlieghe has become the third member of the Committee to say that he would consider voting for a further cut sooner rather than later. The last vote ended 7-2 with the Committee keeping rates at their 0.75% level, but it will be closer to call when they meet again at the end of January.

That particular meeting will be the last for Mark Carney before he is replaced by Andrew Bailey, who is the current CEO of the Financial Conduct Authority.

If there is a rate cut it will be really interesting to see whether lenders have the ability or the will to pass on even lower rates to mortgage borrowers – watch this space.

As for those low rates then, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.14%, (3.77% APRC) and 5-year fixes from 1.44%, (3.20% APRC) whilst variable tracker rates are around from 1.15%, (3.76% APRC).

Those looking at Buy-To-Let can still obtain products from just 1.35%, (4.22% APRC) for a 2-year fixed or 5-year fixes are available from 1.67% (3.81% APRC).

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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