Bank of England's Base Rate Stance
By Taylor Brown
26th March 2024

Another big week for the mortgage and property market with more lender updates, the latest inflation figures and a shift in stance from the Bank of England on the base rate.

Inflation Drops to Lowest Level Since September 2021

The biggest news this week was that inflation fell to its lowest point since September 2021 to 3.4%. Key drivers included a significant slow down in food and hospitality.

With the lower energy price cap to work its way into the inflation figures in the coming weeks could mean we are on track to see inflation dip to the all-important 2% target that the Bank of England is so focused in the next couple of months – just like the chancellor predicted in his Budget just two weeks ago.

No Change to Base Rate But a Softening in Stance From The Bank of England

The Bank of England, on Thursday, voted to hold the base rate at 5.25%.

The BoE's Monetary Policy Committee voted 8-1 to keep borrowing costs at their 16-year high of 5.25%. However crucially, two members who had previously called for higher rates just last month changed their stance. This could start paving the way for the first reductions in the next few months.

Its certainly fair tom say that with mortgage arrears increasing, personal debt growing, the economy on a cliff edge and inflation at a 30 month low the pressure is ramping up for a rate cut sooner rather than later.

Santander Universal Credit Update

As of the 18th of March, Santander shared an update that it now accepts Universal Credit as a secondary source of income that can be included as part of mortgage applications.

Borrowers will still a source of income other than universal credit but this does open up more options for those that may have been stuck on a their current lenders standard variable rate.

Weekly Lender Updates

Earlier this week TSB Bank announced an increase in their rates as well as Virgin Money. We also saw Gen H make some changes to their products and The Mortgage Works (TMW) made changes to the Ltd Company buy to let range.

If our thinking of buy to let then Suffolk Building Society made significant reductions across various buy to let products, including for expats. These changes offer more opportunities borrowers.

Let us know your thoughts or questions in the comments below - when do you think the first base rate reduction will happen and what's your prediction for where it will be by the end of the year.

Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay and early repayment charge to your existing lender if you remortgage. Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority

US Inflation and Its Ripple Effects on the UK Mortgage Landscape

As the markets react to surging US inflation what does it mean for interest rates back home? How are lenders reacting to the news and what changes have happened this week that may make it easier for some self-employed to secure a mortgage? Insight into US Inflation and Its Potential UK ImpactWith a powering economy,

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