Bank of England holds interest rates at 4.25%

As the Bank of England holds interest rates at 4.25%, Steve Cox, our Chief Commercial Officer, shares his views on what this means for advisers and their landlord clients.

“Today’s decision by the Bank of England to hold Bank Base Rate (BBR) was widely expected, particularly in light of global uncertainties and the need for continued reassurance inflation is sustainably on its way back to target. With this week’s CPI figure holding at 3.4%, it’s understandable the MPC is choosing to proceed with some caution. That said, today’s decision has raised the prospect of a cut at the next meeting in August but again, a lot can happen both internationally and domestically between now and then, which means it’s very difficult to predict this seven or so weeks in advance.

“It’s important to note, however, that in the buy-to-let market and other mortgage product sectors, pricing is not generally dictated just by movements in BBR, and we’ve seen a continued fall in swaps having a bigger impact. At Fleet, we’ve recently made a number of reductions to our buy-to-let product rates, and will continue to look at opportunities to continue this.

“For advisers and their landlord clients, this means opportunity is already here. Improved affordability, greater remortgage potential, and renewed portfolio investment are all on the table. Today’s hold does not stall that progress, it simply reinforces the importance of acting strategically and taking advantage of funding opportunities as they are presented.”