Bank of England Holds Base Interest Rate at 5.25%

Thursday 2 November, 2023

Rates Stay Unchanged for Second Month

The Bank of England held the base interest rate at 5.25% on November 2, 2023. This is the second consecutive month that rates have remained unchanged.

While rates are still at their highest level in 15 years, the Bank of England expects inflation to fall to 4.8% in October and continue to decline next year, mainly due to easing energy and food prices.

Possible Future Rate Rise

Despite the hold on rates, some analysts believe that there could be another rate rise in the future, to a peak of 5.5%. This is difficult to predict, but it is worth bearing in mind when making financial plans.

Impact on Mortgages

The high interest rate will continue to put pressure on mortgages. Mortgage rates are unlikely to come down in the short term. It is important to speak to a professional mortgage adviser when you are in a position to renew your mortgage.

Act Now if Your Mortgage Deal is Ending Soon

If your current mortgage deal has six months left until it ends, now is the time to start researching new mortgages.

Expert Advice

Tracy Dove, financial consultant and mortgage broker at Exeter and Basildon, said:

"It is good to see that the interest rate was held, rather than increasing again. However, we are not yet able to determine the impact this will have on mortgage deals. Although the inflation rate has also steadied a little, it is likely to take some time for this stability to be reflected in mortgage deals.

"Therefore, our recommendations remain the same: for anyone who is currently on a fixed-rate mortgage that is coming to the end of the deal, now is the time to take action. We strongly encourage them to speak with a professional mortgage broker for advice as soon as possible."

If you would like to review your mortgage options, please call us on 01707 872000.

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