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Rate Rise Delayed Again?


The things about rate rises these days is that they seem to be talked about for ages, then expected and waited for, but never actually turn up. Yet again we find ourselves in a similar position as the August rate rise that was “nailed on” a few short weeks ago now seems more doubtful.

The main reasons are the surprise inflation figures, which failed to rise as expected and instead stubbornly stuck at 2.4%, coupled with weak performance on the High Street and slower than expected wage growth, despite the fact that there are record levels of employment.

All this leaves economists pretty vexed and guessing about whether the next change will come in August, November or indeed next year. To be honest, your guess is as good as anyone’s.

With this as a backdrop, the usual Brexit shenanigans are going from the sublime to the ridiculous, almost as if the writers of Yes Minister are back in their prime, although even they would probably have thought this plot too far-fetched.

The latest plan, “agreed” by people at Chequers recently, turned out to be not much of a plan anyway with some never agreeing with in the first place and was not actually workable anyway, although some think it may be, though that’s not the point as it’s just about saying you have a plan. Meanwhile, the man employed to carry out the plan resigned, presumably at the prospect of actually having to do some work after 2 years of doing, well who knows what with his time.

This leads everyone to believe that rumours of any plan, old or new, have been mainly exaggerated. Confused?

In fact, it seems like the UK has turned into a completely different country. One where it never rains, our politicians are ridiculous and our football team does well in World Cups!

Meanwhile, the cost of funds has actually fallen slightly over the past couple of weeks, allowing lenders to continue with their “Summer Sizzler” policy. With the current heatwave and my grass now resembling brown dirt rather than lush green, the phrase “Get ‘em whilst they are hot” is rather apt.

We still have 2-year fixes are available at 1.44%, (3.59% APRC) and 5-year fixes from 1.80%, (3.20% APRC) whilst variable discounted rates are around from 0.99%, (4.37% APRC).

Those looking at a Buy-To-Let can still obtain products from just 1.38%, (4.50% APRC) for a 2-year fix.


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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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