Interest rates are staying put, for now. The Bank of England has kept the base rate at 3.75%, but the vote was closer than it looks. Six members of the Monetary Policy Committee voted to hold, and three voted to raise it to 4%.
Inflation is behind the split. It rose to 3.1% in the 12 months to August. Borrowing costs are already moving too: swap rates, which lenders use to price fixed mortgages, are at a three-year high, and some lenders have started raising their mortgage rates. The next decision comes on 5 November, just over a week after the Budget on 28 October.
Nathan Emerson, chief executive of Propertymark, called it “positive news to see the MPC maintain the base rate at 3.75%”. Jason Tebb, president of OnTheMarket, described this sixth hold in a row as a sign of steadiness. His message was clear: “do not sit on your hands waiting for the political dust to settle.”
For anyone planning a move, that’s worth keeping in mind. Buyers have a steady base rate to work with for now, but mortgage pricing is already moving, so getting finance arranged early puts them in a stronger position. Sellers going to market this autumn can make the most of that steadiness while buyers are still active, rather than waiting to see what the Budget and November bring.
Whether you’re thinking of buying or selling in North London, the weeks before the Budget are a good time to plan. Our team can talk you through your options and what the local market looks like right now. Call us on 020 7607 5001.
Source: The Negotiator
— Drivers & Norris