Telephone: 0370 900 94 94 / 0161 237 7540

Email: [email protected]

Interest Rate Commentary

Before selecting a mortgage product it is worthwhile looking at likely interest rate trends: The Bank of England’s Monetary Policy Committee voted 6-3 to keep bank base rate on hold at 5.25%, in line with economists’ expectations.  The Bank sounded a cautionary note when it said that ‘monetary policy is likely to need to be restrictive for an extended period of time’.  Policymakers are now watching for any signs that the conflict in the Middle East causes a fresh round of higher inflation whilst also keeping an eye on the slowdown in economic growth and risk of a recession.  The next MPC meeting is on the 14th December 2023.

It is impossible to be definitive when recommending which of today’s products offer best value.  Product pricing has risen steeply over the last year but has now started to edge down as the market anticipates the peak in the current cycle. Fixed rates offer protection going forward but the choice of term will depend on how quickly rates begin to fall.  Tracker products offer good value and excellent flexibility.  Those with surplus capital should consider the tax advantages of an offset arrangement.


© Copyright Professional Mortgage Services. The information contained herein may be based on data obtained from recognised statistical sources, issuer reports or communications, or other sources believed to be reliable. However, such information has not been verified and we do not make any representations as to its accuracy or completeness. Any statements non-factual in nature constitute only current opinions which are subject to change, without notice. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.