Another week of rate cuts, however risks of volatility ahead…

We are witnessing another positive week with lenders continuing to reduce a number of rates across their product ranges. HSBC and NatWest cut some rates on Tuesday, with Metro Bank and TSB also announcing reductions.

Some analysts expect the Bank of England to cut the benchmark interest rate during this year. However recent inflation data and events in the Middle East are cause for concern for others.

Heightened Volatility Ahead
Although we’re seeing a more optimistic start to 2024 with a sense of greater stability in the market, there are concerns that recent pay growth figures which fell sharply from 7.3% to 6.6% in the three months to November, and today’s news that UK inflation rose unexpectedly to 4.0% in December – the first increase for 10 months, is further adding to the fears that the diplomatic and military issues in the Red Sea may put further interest rate cuts on ice.

Tensions in the Middle East, are stirring concerns about the impact on supply chains. If this situation continues it is likely to exert upward pressure on prices, this in return will cause an uptick in inflation and potentially influence the Bank of England’s monetary policy.

We are already seeing swap rates rise due to the volatile situation in the Middle East. Swap rates increasing, has generally indicated uncertainty in the market.

Secure a rate now!
Fluctuations in interest rates can have significant implications for both current and future mortgage holders. If you are thinking of remortgaging or purchasing a property we recommend you get in touch with our team now so that you can secure the lowest available rate.

Our Flexilock service ensures we’ll search the market for the most suitable product for you and continue to monitor this right up until the product goes live. If we find a lower cost or more fitting product for your circumstances, we will switch the product over. This is done with no extra charge to you.

Speak to our award winning mortgage brokers
Whether you’re considering buying a new property, remortgaging, or just seeking advice on the best course of action in this volatile market, our team is here to assist you. Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.

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