Bank of England pushes base rate up to 4%

Bank of England pushes base rate up to 4%

As you probably know by now, yesterday the Bank of England (BoE) upped the base rate by 50 basis points to 4%. The Monetary Policy Committee voted by a majority of 7-2 to make this increase. The members in the minority voted to keep the rate at 3.5%.

Last month, the Office for National Statistics reported that inflation in the UK was 10.5% in December. December’s figure is slightly down from the 10.7% reported in November and represents a second consecutive monthly fall. In December, the BoE increased the base rate by 50 basis points to 3.5%. The next MPC meeting is scheduled for 23 March.

So here we have some bad news with the base rate going up by half a percent, but there is perhaps some light at the end of the tunnel, with inflation perhaps (hopefully!) having peaked recently. But even with the BoE base rate increasing, it’s interesting to note that lenders have not so far matched this increase with regards their fixed rate offerings – in fact, many reduced rates as late as a couple of days ago, when you would have expected them to increase, in anticipation of a BoE rise. This is again good news for mortgage borrowers, and we may now be looking at a few months of relative stability for fixed rates.

So if your current fixed rate is up for renewal within the next 6 months, contact us at Adept now to discuss it, as many lenders have increased their window of allowing product switches from the previously traditional 3 months before the deal ends, to 6 months. Or if you’re thinking of buying for the first time, or moving home, now may be a good time to think about doing it, so again please call us, our initial advice is always free of charge.

Tel (Mark) – 07973 502949

Tel (Andrew) – 07971 519735

As for the weekend, well it’s the start of the annual rugby 6 Nations tournament, and a potentially tricky opener for any Welsh fans like us, with the Irish paying us a visit in Cardiff. But whatever the outcome, there will be plenty of drinking and singing in rugby clubs across the land, which is where Mark Lewis will be Friday night and Saturday afternoon. Cmon Cymru!

Adept Private Finance is a trading style of I-Property Finance Limited, which is authorised and regulated by the Financial Conduct Authority. Our Financial Register Number is 734423.

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