Inflation has been falling and while this could be good news in terms of disposable income, it hasn’t impacted the Bank of England Base Rate yet.

The latest review in December was 6-3 in favour of holding the rate at 5.25%. The out voted 3 were in favour of increasing it to 5.5%.

This doesn’t bode well for people on tracker and standard variable rates. However, you would assume that people on these rates for a good reason (i.e. flexibility, waiting for fixed rates to reduce etc)

Mortgage Rates

The good news for borrowers is that mortgage rates have been reducing steadily, particularly over the last couple of months.

As we move into January, many high street lenders have significantly reduced their rates to numbers that we haven’t seen for some time.

The headline rates for the lower loan to value (ltv) limits now potentially start from just under 4% (3.74%-3.92%). Of course not everybody can achieve these, but it is encouraging when compared 5-6%+ rates we have seen over the last 12 months.

Whether this is purely to do with the cost of borrowing or the appetite to compete has had an effect, what is certain is that this is good news for borrowers.

This is particularly the case for anxious people needing to remortgage within the next 6-12 months who are currently on a low rate and would have been worrying about the impact this will have on their finance.

Hopefully this trend of rate reductions will continue.

At Easy Street it’s our job to provide you with the best information and advice possible to help you buy, keep and own your property. If you’re worried about the mortgage market at the moment and you aren’t sure what the best options are for you, we’d be happy to help. Just get in touch with the Easy Street team to book a consultation.