Yesterday the Bank of England’s Monetary Policy Committee chose to keep the base interest rate unchanged at 3.75%, following a very close vote among policymakers. This decision means that borrowing costs for now remain steady, but the tone from the Bank suggests that further cuts are likely later in the year as inflation continues to fall back towards the 2% target.
For buyers and sellers in the housing market, this pause gives a bit of clarity. Mortgage lenders often take their cue from the Bank’s decisions, so holding rates steady can help maintain current borrowing conditions while buyers and movers plan their next steps with more confidence.
That said, with inflation easing and future reductions signalled, we could see cheaper borrowing costs ahead. This potential shift means it’s a good idea for anyone considering moving or remortgaging to stay in close contact with a trusted adviser. Changes to rates can influence how quickly lenders adjust mortgage deals, and acting at the right time can make a meaningful difference to your monthly payments.
As always, if you’d like personalised insight on how these developments could impact your plans, feel free to get in touch. We’re here to help you navigate the market with confidence.