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Posted on 21/09/23
The Bank of England has kept borrowing costs untouched for the first time in nearly two years following yesterday's better-than-expected figures that showed UK infllation dipped to 6.7% in August down from 6.8% a month earlier. Today's decision leaves the bank rate at a 15 year high of 5.25% following a run of 14 consecutive rate rises stretching back to December 2021 and it is hoped that this could mark the peak of borrowing costs in this current cycle.
With mortgage rates coming down slightly a pause on interest rate rises could be just what’s needed to provoke more competition across the big lenders allowing for better rate options to enter the market.
The inflation numbers should bring more economic certainty and confidence to the lenders. This will give a further boost to competitive pricing in the mortgage markets and help buyers reliant on borrowing better compete with the cash buyers. Today's news will come as a relief to more than a million borrowers with variable rate and tracker mortgages who have been battered by a series of rising home loan costs stretching back to December 2021.