Mortgage Holders Face Uncertainty as Interest Rates Remain Unchanged

The Bank of England’s decision to hold interest rates at 5.25% has left mortgage holders wondering when they will see some relief. Despite inflation returning to the 2% target, the Bank has chosen not to cut rates, leaving many to wonder when they will see some respite.

The average two-year fixed mortgage rate has crept up to 5.93%, while the average five-year fixed-rate mortgage has edged up to 5.50%. This means that mortgage holders could see their monthly payments rise by £287 if they are on the current average standard variable rate (SVR) of 8.18%.

Mortgage rates on the rise

The Bank’s decision has been met with disappointment from many, who were hoping for a rate cut to ease the burden on mortgage holders. However, experts believe that the Bank is waiting to see the outcome of the general election and the final economic plans before making a move.

Interest rates to stay high

The Bank’s Monetary Policy Committee (MPC) is cautious about cutting rates, despite inflation returning to target. The MPC is waiting to see if inflation is truly under control before making a move.

Inflation returns to target

The situation is bleak for mortgage holders, who are facing higher monthly payments and uncertainty about when they will see some relief. The Bank’s decision has been met with criticism, with some arguing that it is not doing enough to help those struggling with mortgage payments.

Mortgage payments on the rise

The Bank’s decision has also been influenced by the general election, with some arguing that it is waiting to see the outcome before making a move. This has led to accusations that the Bank is playing politics, rather than making decisions based on economic data.

General election influences Bank’s decision

The situation is complex, and mortgage holders are left wondering when they will see some relief. The Bank’s decision has added to the uncertainty, and it remains to be seen when mortgage holders will see some respite.

Uncertainty for mortgage holders