Phoebus comment on today's GDP: good news for borrowers and lenders

16 January 2025

Richard Pike, chief sales and marketing officer at Phoebus, said: “This is the second consecutive day of encouraging figures on the UK economy from the ONS, as it reveals that the economy grew by 0.1% in November after two months of contraction. This and yesterday’s unexpected dip in inflation should help bolster market and consumer confidence after recent turbulence, giving rise to hopes for a drop in the Bank rate next month.

“With house prices continuing their upward trajectory and interest rates expected to fall as the year progresses, this is good news for borrowers and lenders alike. Lender volumes should increase this year while borrowers enduring financial hardship on variable rates will experience a positive impact as rates decrease. Borrowers coming off fixed rates later in the year will also be in a better place than this time last year, as they shouldn’t get as much of a payment jolt.”