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Ben Allen, Managing Director of network, The Right Mortgage & Protection Network:
“The decision to hold Bank Base Rate at 3.75% looks like the right one given the latest inflation data for May released yesterday. Most had expected inflation to tick upwards in response to higher energy costs caused by geopolitical tensions, but the figures showed a more balanced picture, with lower food prices helping offset some of those pressures. While there remains a significant amount of uncertainty about the outlook, today's decision suggests the MPC is comfortable taking a little more time to assess how these competing factors develop before making any further moves.
“For the mortgage market, stability is always preferable to surprises. Encouragingly, we have seen lenders across the market cutting rates in recent weeks as swap rates have eased, providing some welcome relief for borrowers and creating opportunities for advisers to help clients secure more competitive deals. There is still no guarantee this trend will continue, particularly given the number of economic and geopolitical risks that remain, but the recent direction of travel has been positive. The hope now is swap rates continue to move lower and borrowers can benefit from a more competitive finance environment in the months ahead.”
