The recent decision by the Bank of England to cut interest rates to 4.75% brings welcome relief for many in our community. For those on tracker mortgages, this change offers an immediate boost to finances, while others on standard variable rates should see at least part of this reduction passed on by lenders. Fixed rate mortgages will stop the same.
Inflation has also dropped significantly, now at a manageable 1.7%, compared to the 3.9% we saw last year, and a sharp contrast to the 8.7% from eighteen months ago. This drop means better news for local household budgets and offers reassurance that rising costs are slowing down, which will make a real difference to many of us, here in Lancaster and Morecambe.
Looking further ahead, the five-year swap rate—key for pricing fixed-rate mortgages—remains just above 4%, despite slight increases due to recent budget updates. This rate stability could indicate a “new normal” for borrowing, adding a level of predictability to the local housing market.
Overall, these improvements in inflation and interest rates support a brighter outlook for Lancaster homeowners. With finances stabilizing and more affordable mortgage options likely available, Lancaster’s housing market can look forward to a period of steadier growth and increased affordability.
Are you thinking of moving? If so and you would like to talk in more depth about what this all means for you and your home, please get in touch. At JDG we are here to help.
Thanks for reading
Michelle x
