It’s been a week (at time of writing) since the Bank of England held the base rate, the first time since December 2021 we haven’t seen an increase. Many predicted a further rise until the last minute, the late announcement last Wednesday confirming inflation dropped to 6.8% seemed enough to sway a 5-4 decision for holding at 5.25%, at least until November 2nd anyway. For tracker rate mortgage holders this will be a welcome decision, Base Rate being held means no further increase to the monthly payments for the time being.
Elsewhere there are positive signs in the mortgage market with Nationwide, Santander and others dropping interest rates with some now even starting with a 4 compared to Q2 this year where the average 5 year fixed rate was above 6%. We have also seen lenders broadening their criteria- Newcastle starting to accept 1 years accounts for self-employed, Skipton expanding their Track Record out to more than just First Time Buyers and Accord enhancing their Contractor offering. Brokers are also starting to report an increase in business after what was referred to as ‘Dead August’.
After a particularly difficult 12 months it seems the industry is starting to get back onto a stable footing once more.