Base Rate Increases to 4%

Following the first Monetary Policy Committee (MPC) meeting of 2023, The Bank of England has announced a Base Rate (BBR) increase of 0.5%. 

Bringing the BBR to 4.0%, what does this mean for the mortgage market?  

Although this comes as the tenth BBR increase we’ve seen since December 2021, many industry experts are more than positive in their predictions for the rest of 2023 and how the mortgage market will respond in the coming months.

In recent weeks, we have seen governmental upheaval calm, swap rates stabilise, and many lenders, both high street and specialist, announce new and improved products including competitive 5-year Fixed rates for buy-to-let and we expect the competition to follow. 

On top of this, inflation rates have started to decrease, recently falling from 10.7% to 10.5%. The Bank further forecasts that inflation levels will fall to 8% in June before dropping to about 3% at the start of 2024, which should have a further positive impact on rates. 

All would seemingly indicate that the recent rate rises have stabilised the impact of the recent economic upheaval from rising inflation rates and the cost of living crisis, so we for one are very optimistic for the opportunities that the next few months hold for us all. 

As ever, we will continue to monitor the market to ensure you get the most up-to-date rates and informed advice. If you have any questions on how this recent increase may impact your portfolio or the recent rates that have just been announced, we’re here to help →.