Bank of England’s next move, could we see more interest rate hikes?

As November approaches, all eyes are set on the Bank of England’s monetary policy meeting scheduled for the 2nd of the month. This gathering will conclude with a decision on the Bank’s Base Rate—an indicator that holds significant sway over the UK’s mortgage landscape.

Insights from leading experts indicate the Bank might just keep things steady this time around. The vast majority of economists polled by Reuters predicted that the BoE will hold the Base Rate at 5.25% on November 2nd. However, they also signal a note of caution, indicating that another increase before year-end could still be in the cards.

Lenders Stir the Market with Competitive Rates
The mortgage market continues to be a hotbed of activity, with some of the UK’s biggest lenders unveiling competitive rates that cater to both new and existing customers.

One of the recent standouts in this arena is Nationwide. They’ve rolled out a fresh set of rates that have grabbed the industry’s attention. By trimming residential fixed rates by up to 0.45 percentage points, Nationwide now boasts attractive offers such as five-year fixed rates for residential remortgages at just 4.89% (with a £999 fee, 60% LTV) and two-year fixes at 70% LTV starting from 5.59% with no fee.

Not one to be left behind, Halifax has come forth with its own enticing range, focusing on three-year fixed rate deals tailored for residential remortgages. These competitive deals initiate from a promising 5.08% rate.

House Price Trends: A Mixed Bag
Recent market data from Nationwide indicates a slide in house prices by 5.3% in the year leading up to September. In real terms, this translates to a £14,600 depreciation on an average home. However, it’s not all gloomy news. Halifax, in their recent release, pointed out that property prices are displaying more resilience than anticipated. They still stand tall, £39,400 above the figures recorded in March 2020.

Another website, Zoopla, reported a 4.2% average discount on sellers’ asking prices in the month of September. This marked the most significant level since 2019.

It’s worth noting that while average house prices have generally fallen during the last year, they’re still almost 20% higher than they were before the pandemic four years ago.

Get mortgage advice today
In the midst of market ebbs and flows, having an experienced guide by your side can make all the difference.
At Mortgages and Insurers Solutions, our award-winning mortgage brokers are poised to assist you every step of the way.

Whether you’re contemplating purchasing a new home, diving into the buy-to-let arena, considering switching products, or exploring remortgaging options, we’ve got your back.
Reach out to us today at 0208 364 3444 or click here to schedule a free consultation call

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