Anderson HarrisMarket Insight
Time to settle in to higher-altitude borrowing
Published: 2nd November 2023
This Article was Written by: Adrian Anderson
In its continued efforts to reduce inflation, the Bank of England’s Monetary Policy Committee (MPC) today confirmed that the base rate would remain at 5.25%.
On the upside, this decision bucks against previous forecasts which had suggested the base rate would have topped 6% by now. For homeowners, today’s announcement will bring little joy ahead of the festive season and given the higher household costs that typically come in the colder winter months.
Many have been cutting back on expenditure or using savings for a while now to make their mortgage payments. With base rate remaining the same an already tough period has now been extended.
In contrast, as we said in our review of October’s announcement, the continued softening of house prices against expensive rental prices will help some first-time buyers get onto the property ladder.
For those already with a mortgage who have a fixed-term product due for renewal soon, it is imperative to talk with your mortgage broker as soon as possible. Over recent weeks, mortgage rates from most lenders have been reducing in response to last month’s base rate freeze. As it is unlikely that base rate will reduce significantly until well into 2024, there may not be much opportunity for fixed rate mortgages to reduce much further.
November 15th brings the next inflation announcement. Given this, the slowdown of the jobs market, and the relatively weak UK Economy growth figures, many people will look to the Chancellor for a glimmer of hope when he gives his Autumn Statement later this month.
Don’t sit on the fence
If your fixed-term mortgage product is coming to the end of its term, please don’t leave it to the last minute to discuss options with a mortgage broker. Give yourself and your broker time to find solutions based on your current and future financial forecasts. The current slightly lower product rates might not be around for long.
Do contact our team of specialists.
We will take time to understand your specific financial situation and work hard to find solutions to help you going forward. Contact us on +44 (0) 20 7495 6633 or e: firstname.lastname@example.org.