Could the Bank of England hold interest rates today?
Summary
The article reports that average mortgage rates have risen to their highest level since late 2023 as lenders adjust pricing ahead of a Bank of England Monetary Policy Committee decision on interest rates. It notes expectations of a possible 0.25% increase to 4%, alongside commentary that higher rates are being driven by swap rate volatility and broader inflation pressures.
Why it matters
Mortgage pricing affects buyer affordability, transaction volumes and market sentiment, all of which influence surveyors’ workloads and valuation assumptions. Changes in borrowing costs can also affect first-time buyer demand and the pace of sales, particularly in price-sensitive segments.
Key points
- Average new mortgage rates have risen to 5.89%, the highest in three years.
- Lenders have repriced fixed-rate products higher in response to expected Bank of England action.
- The Bank of England MPC is meeting with many expecting a 0.25% rate rise to 4%.
- Inflation remains above target, with CPI reported at 3.75% in October.
- A new government equity loan scheme, Your First Home, is due to launch next February.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
