Mortgage Rates Hold Steady: What This Means for Homeowners

The Bank of England has decided to keep interest rates unchanged at 5.25%, marking the seventh time in a row that the central bank has opted to hold rates steady. This decision has significant implications for homeowners, particularly those with mortgages.

Interest rates remain steady, but what does this mean for homeowners?

According to Martin Lewis’ Money Saving Expert (MSE), mortgage rates are unlikely to change much in the short term. For those on a fixed mortgage deal, there’s no change for now, but it’s essential to check rates if your deal is ending soon.

Ruth Gregory, deputy chief UK economist at Capital Economics, agrees that the Bank of England is getting closer to cutting rates. She predicts that there is a good chance of a rate cut in August, assuming the next inflation report in mid-July doesn’t contain any nasty surprises.

Mortgage rates may not change much in the short term, but experts predict a rate cut in August.

James Smith, developed markets economist at European bank ING, shares a similar view, stating that the Bank of England is getting closer to cutting rates. He believes that the committee is almost ready to make a move, and a rate cut in August is likely.

Ray Boulger, of mortgage brokers John Charcol, expects little change in mortgage rates in the short term. He predicts small movements both up and down, depending on where lenders want to position themselves, but with more reductions than increases.

Mortgage brokers expect little change in mortgage rates in the short term.

In conclusion, while interest rates remain steady, experts predict a rate cut in August. Homeowners should keep a close eye on mortgage rates and be prepared to act if rates change.