The Monetary Policy Committee (MPC) has voted to hold base rate at 3.75% for the sixth consecutive meeting.

With the US Federal Reserve and European Central Bank both raising their benchmark rates, the pressure was on Governor Andrew Bailey and the MPC to follow suit, but they resisted.

However, the markets are pricing in up to four interest rate rises. Inflationary concerns are growing with the prospect of higher energy prices to come, and worries for the labour market and wider economy persist.

The number of MPC members who are leaning towards a rate increase remains consistent with the 6-3 voting split at the July meeting. Once again, three members favoured a quarter-point increase to 4%. However, the MPC said ’the risks to the inflation outlook are tilted to the upside, and more so than at the time of the July Monetary Policy Report, although there remains scope for the outlook to change materially as events in the Middle East unfold’.

Commenting on the decision, Mark Harris said:

“Prevailing caution feels the correct response for now, with a steady hand on the tiller rather than a knee-jerk reaction to raising rates. This is vital for overall market stability and confidence.

“Despite the rate hold, borrowers still have to contend with an upwards trajectory in mortgage pricing, with several big lenders increasing rates on their two- and five-year fixes. Mortgages are growing more expensive and affordability concerns remain, although swap rates have eased today after rising in recent days.

“Independent advice from a broker such as SPF Private Clients is crucial. Mortgage rates are usually valid for up to six months, so securing one now with the option of reviewing it before completion to see whether there is a better product available at that time, would be a prudent approach. Get in touch with SPF Private Clients to find out what options are available to you.”

The Monetary Policy Committee (MPC) has voted to hold base rate at 3.75% for the fifth consecutive meeting.

Inflationary concerns remain and the expectation is that prices will rise further. While June’s fall in CPI inflation to 2.6% came as a welcome surprise, there are other factors to consider. Concerns for the labour market and wider economy persist, as well as secondary effects caused by renewed hostilities in the Middle East.

Unlike the last meeting in June where two members voted for a quarter-point increase to 4%, this time around three members favoured such a rise. The Committee said it ‘stands ready to act as necessary to ensure that CPI inflation remains on track to meet the 2% target in the medium term.

Commenting on the decision, Mark Harris, chief executive of SPF Private Clients, said:

“Prevailing caution feels the right response for now, with a steady hand on the tiller rather than a knee-jerk reaction to raising rates, which is vital for overall market stability and confidence.

“Despite the rate hold, borrowers still have to contend with an upwards trajectory in mortgage pricing, with a number of lenders increasing rates on their two- and five-year fixes. Mortgages are more expensive than they were a month ago, so affordability concerns remain.

“Independent advice from a broker such as SPF Private Clients is more important than ever, as is securing a rate as soon as possible with the option of reviewing it before completion to see whether there is a better product available at that time. Get in touch with SPF Private Clients to find out what options are available to you.”

The Monetary Policy Committee (MPC) has voted once again to hold interest rates at 3.75% at today’s meeting.

While an increase in base rate was always possible, it never looked likely. Inflation sticking at 2.8% in May was a welcome surprise and took some pressure off the rate setters who have to balance the secondary effects caused by the Middle East conflict with concerns for the loosening labour market and signs of a weakening economy.

However, unlike the last meeting where only one member voted for a quarter-point increase to 4%, this time around two members voted for such a rise. The Committee said it would continue to monitor closely the situation in the Middle East and ‘how its impact propagates through the economy’.

Commenting on the decision, Mark Harris, chief executive of SPF Private Clients, said:

“A steady hand on the tiller, rather than a knee-jerk reaction to raising rates, is vital for overall market stability and confidence, which is why we welcome today’s decision to hold interest rates.

“Lenders have been trimming their mortgage rates in light of falling Swap rates, which underpin the pricing of fixed-rate mortgages, and we expect this trend to continue.

“Some clients are favouring base-rate trackers, as these are cheaper than their fixed-rate equivalents at least initially, and would require a couple of quarter-point increases in base rate in order for borrowers to be worse off.

“However, what suits one person may not suit another: if you can’t afford to be wrong – that is, if interest rates were to rise, you would struggle to pay your mortgage, then a fixed rate makes sense. Those opting for fixed rates have also been leaning towards shorter-term products over their longer-term equivalents, as they feel the increases in fixed-rate pricing in recent weeks are likely to be temporary, so it is unwise to lock in at current highs.

“With so much uncertainty and volatility with regards to Swap rates and mortgage pricing, independent advice is more valuable than ever. Get in touch with SPF Private Clients to find out what options are available to you.”

The Monetary Policy Committee (MPC) has voted once again to hold interest rates at 3.75% at today’s meeting. This was widely expected given the Middle East conflict, higher energy costs and the threat of rising inflation, at the same time as a weakening economy and loosening labour market.

However, unlike the previous meeting, where the nine members voted unanimously to hold rates at 3.75%, this time around one member voted for a quarter-point increase to 4%. The Bank said that while CPI inflation rose to 3.3% in the 12 months to March from 3% in January and February, it is ‘likely to be higher later this year as the effects of higher energy prices pass through’.

Commenting on the decision, Mark Harris, chief executive of SPF Private Clients, said: “A steady approach, rather than a knee-jerk reaction to raising rates, is important for overall market stability and confidence, which is why we welcome today’s decision to hold rates.

“The good news for borrowers is that irrespective of today’s vote, several of the bigger lenders are trimming their mortgage rates even though Swap rates, which underpin the pricing of fixed-rate mortgages, remain volatile. Barclays, HSBC and NatWest, among others, are all reducing their mortgage rates this week. With base-rate trackers falling below 4%, those who don’t need the certainty of a fixed-rate mortgage to help with budgeting are increasingly considering other options. It is worth talking to a whole-of-market broker such as SPF Private Clients to find out what options are available to you.”

Those looking to take out a new mortgage or refinance in coming months should plan ahead as much as possible, seeking advice from a whole-of-market broker such as SPF Private Clients. Rates can be booked up to several months before you need them so it’s worth doing this for peace of mind. If rates have fallen by the time you come to take out your mortgage, you should be able to move onto a cheaper deal at that time.

The Monetary Policy Committee (MPC) has voted to hold interest rates at 3.75% at today’s meeting – a move which was widely expected given the Middle East conflict and threat of rising inflation.

The Committee’s nine members voted unanimously to maintain base rate at its existing level, remaining ‘alert to the increased risk of domestic inflationary pressures’. CPI inflation fell to 3% in the year to January from 3.4% in December, above the Bank’s 2%, with February’s reading due next week.

Market expectations for two or three further quarter-point rate cuts this year resulted in a fall in Swap rates, which underpin the pricing of fixed-rate mortgages. Now, with market expectations that those reductions may not happen, and a possibility that rates may even rise at some point, Swaps are extremely volatile and have edged upwards again.

Mortgage repricing has happened in stages, initially in response to the increase in cost of funds and recently as a result of service preservation. The ‘big six’ lenders have attempted to reprice away from the top of the ‘best buys’ but no sooner do they do so, then the next in the table does the same and so on.

Commenting on the base-rate decision, Mark Harris, chief executive of SPF Private Clients, said: “There was very little chance that the Bank of England would cut interest rates this month given the geopolitical outlook and fears about the knock-on impact on inflation.

“While a rate hold is disappointing for borrowers with variable or tracker-rate mortgages who would have seen a further drop in their monthly payments if it was a cut, those on existing fixed-rate mortgages won’t see any change.

“With so much volatility on pricing currently, borrowers should consider taking action and securing a rate now if they will need a mortgage in the next six months. If the situation improves, you may be able to swap to a cheaper rate at that time. If mortgage rates continue to rise, you will be relieved that you acted when you did.”

Those looking to take out a new mortgage or refinance in coming months should plan ahead as much as possible, seeking advice from a whole-of-market broker such as SPF Private Clients. Rates can be booked up to several months before you need them so it’s worth doing this for peace of mind. If rates have fallen by the time you come to take out your mortgage, you should be able to move onto a cheaper deal at that time.

The Monetary Policy Committee (MPC) has voted to hold interest rates at 3.75% at today’s meeting – a move which was widely expected. However, the vote was much closer than many anticipated after inflation rose to 3.4% in the year to December.

Following the cut in base rate at the MPC meeting in December, this time around members voted by a majority of five to four in favour of a hold. Four members voted for a 0.25 percentage point reduction in bank rate to 3.5% amid expectations that inflation will fall back to around the 2% target from April.

Although lenders kicked off the year with a round of rate reductions, in recent days mortgage rates have been creeping back upwards again.

Commenting on the base-rate decision, Mark Harris, chief executive of SPF Private Clients, says: “It felt as though there was a slim chance that the Bank of England would cut interest rates this month amid ongoing concerns over inflation, but the vote was much closer than many anticipated.

“While this hold is disappointing for borrowers with variable or tracker-rate mortgages who would have seen a further drop in their monthly payments if there was a cut, those on existing fixed-rate mortgages won’t see any change. Those who are coming up to remortgage will have noted that some lenders have increased the pricing on new fixed-rate mortgages in recent days, the pricing of which is heavily influenced by swap rates. This increase in swap rates reflects market expectations of a shallower path of rate cuts than was previously thought, although after today’s vote that outlook could shift again.

“Given this uncertainty, those who are due to take out a new deal this year or remortgage should consider securing a product now. Speak to a whole-of-market broker such as SPF Private Clients and get a rate booked in for peace of mind. Then, when you come to take out the mortgage, if rates have fallen again, you should be able to move onto a cheaper rate at that time. However, if they have risen, you will be pleased you secured a rate when you did.”

The Monetary Policy Committee (MPC)  has voted to cut interest rates from 4% to 3.75% at today’s meeting – a move which was widely expected.

After holding rates last month, members voted by a majority of five to four in favour of a cut this time around. Those four members who did not vote for a cut favoured keeping base rate at 4%. Inflation falling to 3.2% in the year to November, a better-than-expected drop, would have helped the rate setters come to their decision.

Lenders have been reducing mortgage rates in anticipation of today’s announcement, with short-term fixes now available from just over the 3.5% mark.

Commenting on the base-rate decision, Mark Harris, chief executive of SPF Private Clients, says: “This rate reduction was a dead cert after the inflation news earlier in the week.”

“The markets expect another two or three base-rate reductions in the new year, which is great news for those moving house or remortgaging.”

“Those remortgaging in the next few months have a free throw of the dice, as rates can be booked up to several months before required. You can book a rate now and review prior to completion – if rates have fallen by then, you can enquire about switching to lower rate. If not, you can keep what you have.”

Those looking to take out a new mortgage or refinance in coming months should plan ahead as much as possible, seeking advice from a whole-of-market broker such as SPF Private Clients.

Whilte the Monetary Policy Committee (MPC) voted to hold interest rates at 4% at today’s meeting, the cost of borrowing continues to ease with several big lenders recently reducing their mortgage pricing.

The Bank voted to hold rates for a second consecutive meeting, with members voting by a majority of five to four in favour of a hold, with those four members voting for a quarter-point reduction to 3.75%.

However, with market expectations of another base rate cut before the end of the year, lenders are reducing their rates regardless.

The ‘big six’ have been particularly active in reducing rates. Nationwide is the latest to make its move, introducing a range of rate reductions yesterday for home movers, those remortgaging and first-time buyers. Its lowest fixed rate now pegged at 3.64% (a two-year fix for new and existing customers moving home at 60 per cent loan-to-value with £1,499 fee).

Commenting on the base-rate decision, Mark Harris, chief executive of SPF Private Clients, says: “There was a slim chance that the Bank would cut interest rates this month but ongoing concerns over inflation, which remained steady at 3.8% in the year to September, and perhaps a bit of wait-and-see as to what impact the Budget has, meant caution prevailed.”

“We are encouraged by four members voting for a reduction in base rate and hope more of the Committee come round to their way of thinking in due course, perhaps even as soon as next month.”

“A rate cut today would have been a welcome shot in the arm for the housing market, particularly amid so much speculation as to what property taxes – and more – will be included in the Budget in three weeks. Despite five rate reductions since August last year, affordability concerns persist with borrowers having to get used to higher mortgage rates. Thankfully, the big lenders are reducing their rates in an effort to drum up further business before the year-end, with some competitively-priced products out there.”

Those looking to take out a new mortgage or refinance in coming months should plan ahead as much as possible, seeking advice from a whole-of-market broker such as SPF Private Clients. Rates can be booked up to several months before you need them so it’s worth doing this for peace of mind. If rates have fallen by the time you come to take out your mortgage, you should be able to move onto a cheaper deal at that time.

The Monetary Policy Committee (MPC) has voted to hold interest rates at 4% at today’s meeting. Members voted by a majority of seven to two in favour of a hold, with two members voting for a quarter-point reduction to 3.75%.

The Committee said it “remains focused on squeezing out any existing or emerging persistent inflationary pressures, to return inflation sustainably to its 2% target in the medium term”. Twelve-month CPI inflation was 3.8% in August and is expected to increase slightly in September, before falling back towards the 2% target.

Commenting on the decision, Mark Harris, chief executive of SPF Private Clients, says:

“There was a very slim chance that the Bank would cut interest rates this month but ongoing concerns over inflation, which remained steady at 3.8% in August, meant caution prevailed.

“With inflation expected to rise to over 4% at the next reading, double the Bank’s 2% target, the chance of a cut at the next meeting in November is also looking less likely. However, we are encouraged by two members voting for a reduction this time around and hope more of the Committee come round to their way of thinking in due course.

With speculation rife as to whether the Chancellor introduces various property taxes in her November budget, estate agents are reporting that discretionary buyers and sellers are taking a ‘wait and see’ approach. A rate cut today would have been a welcome shot in the arm for the housing market, particularly now that the stamp duty holiday has ended. Despite five rate reductions since last August, affordability concerns persist with borrowers having to get used to higher mortgage rates.

Those looking to take out a new mortgage or refinance in coming months should plan ahead as much as possible, seeking advice from a whole-of-market broker such as SPF Private Clients. Rates can be booked up to several months before you need them so it’s worth doing this for peace of mind. If rates have fallen by the time you come to take out your mortgage, you should be able to move onto a cheaper deal at that time.”

Hardly a day goes by without another lender reducing its mortgage rates for new purchases and remortgages. Falling Swap rates, which underpin the pricing of fixed-rate mortgages, mean sub-4% mortgage rates have become more readily available in the past couple of weeks, with a number of lenders offering borrowers several choices at this level. This is great news for hard-pressed borrowers who have been struggling with higher rates in recent months.

However, while these rate reductions are grabbing all the headlines, what has passed under the radar is something potentially even more important, as several lenders have also tweaked their affordability guidelines. As mortgage and reversion rates fall, aligned to the way lenders stress any borrowing request, this has resulted in borrowing boundaries being redrawn, resulting in more positive outcomes for borrowers.

Santander is one of a number of lenders which has recently tweaked its affordability guidelines. The lender announced that all residential affordability rates were reduced by up to 0.75 per cent, bringing them to the lowest levels since 2022. Santander added: “In real terms, this means that many customers applying for a residential mortgage from Santander UK can now borrow between £10,000 to £35,000 more than [before the changes were implemented], depending on their individual circumstances and subject to affordability checks and loan to income limits.”

It is not just Santander who has made such changes although others have not been quite as explicit when it comes to the exact detail. Lending institutions across the board from large high-street banks such as NatWest to building societies and specialist lenders have adjusted their affordability assessments downwards, resulting in applicants being able to borrow greater amounts. It potentially means that tens of thousands of pounds in extra borrowing potential is now available to mortgage customers, bringing that home ownership goal increasingly within reach.

As always, it is worth speaking to a whole-of-market broker such as SPF Private Clients if you need to take out a mortgage or refinance. Our advisers will not only know which lenders offer the best rates but also the most attractive terms when it comes to affordability, ensuring you get the best mortgage for your circumstances.