The Monetary Policy Committee of the Bank of England today announced that they are holding the Bank Base Rate at 5.25%, ending a long run of consecutive rate rises that began in November 2021. The vote was a close one at 5-4.
Andrew Montlake, MD at mortgage brokers Coreco, commented, “Common sense has finally prevailed and this pause for breath to buy time to analyse further data will be welcomed by many.
“There really is no point in heaping further misery on mortgage borrowers who have been hammered enough already.
“We have already seen that inflation, and most importantly core inflation, has started to recede as previous rate rises continue to filter through the system and this is expected to continue.
“It now looks like we are at the very top of the interest rate cycle, with SWAP rates continuing to ease and giving lenders more space to engage in a rate war as they battle for market share and look to get a good start to 2024.
“As this competition increases, we will see more products available starting with a 4 rather than a 5, but this will be a slow and steady fall rather than anything dramatic and the current plateau looks like it will be a stable place for some time yet.
“This will inevitably start to encourage more buyers back into the market as they seek to take advantage of the buyer’s market whilst it lasts”.