Interest-rate comments from 1) Access FS and 2) Movera

14 December 2023

Karl Wilkinson, CEO at Access Financial Services, said:
“Rates are now levelling off - I suspect the Bank of England will wait to see how the market adjusts. Christmas spending will give some false positives. So, all things being equal, we could see the base rate remain at this level for a few months to come.

“The drop in mortgage rates caused a stir in the house market last month with estate agents seeing sales escalate, so I expect the decision to maintain the base rate will further boost confidence in the housing market and swap rates for the foreseeable future.”

Mark Tosetti, partnerships director at Movera, commented:
“Today’s rate-setting decision by the Bank of England is even less of a surprise than it was last month. Especially after yesterday’s shock shrinkage on October’s GDP. The signs are clear that the UK economy is losing momentum as we approach the end of the year.

“If inflation continues to fall, it will be very interesting to see what the Bank does next time round. Is this just the beginning of a run of flat rates? Very possibly.

“How will this affect the home-moving market? Mortgage rates have continued to fall since the summer. If inflation drops further, we could well be looking at average mortgage rates of below five percent again in 2024, which would be no small relief for both new borrowers, and homeowners looking to remortgage.”