30 January 2020
If you are covering the news that the Bank of England has opted to hold interest rates at 0.75%, please see the following comment from Karen Noye, mortgage expert at Quilter:
“There was a lot of speculation that the Bank of England was going to cut interest rates today as a result of the UK’s stagnant growth. However, following the landslide election results at the end of last year there has been an increase in business confidence resulting in the BoE opting for a wait and see approach and holding the rate at 0.75%.
“Borrowers were likely hoping for an interest rate cut today as this could have put a some extra money in their pocket each month. However, the cut would only positively impact those on a variable-rate mortgage or a "tracker" mortgage initially, with those a fixed-rate mortgage not benefiting unless they are coming to the end of their term. However, despite the decision to hold steady some lenders have already reduced their rates this week in the run up to the announcement.
“Looking to the future the BoE’s next interest rate decision is going to be guided by whether the increased levels of business confidence continue or if the outlook starts to sour as a result of faltering Brexit talks.
“Despite the rate being held there are still lots of competitive deals on the market, particularly in the short term. Interestingly there are still lots of people still choosing to opt for a 5 year fixed rate deal rather than 2 year fixed rate deals. Everyone’s financial circumstance is different and a mortgage adviser will be able to look at someone’s holistic financial life and help someone choose the right deal for their specific needs.”
Alex BerryExternal Communications Executive
If you are covering the news that the Autumn Budget has been cancelled, please see the following commentary from Rachael Griffin, tax and financial planning expert at Quilter:
If you are covering reports that the government will maintain the triple lock to uprate state pension income in 2021/22, please see the following comment from Ian Browne, pensions expert at Quilter: