Bank of England holds interest rate at 4%: what it means for homebuyers

The Bank of England has once again convened to discuss interest rates, this time opting to hold the rate at 4%.

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Many experts had predicted a reduction to 3.75%, citing the continued decline in job vacancies across the labour market. There have already been three rate cuts this year, and with another meeting scheduled for mid-December, there’s still time for one more.

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Economic experts say holding the rate was the right decision, given current levels of British inflation and ongoing budget uncertainty.

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To find out how this decision affects people trying to get on the property ladder, we spoke to our Mortgage Protection Executive, Nicola Henton.

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Here’s what she had to say;

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“While many were hoping for another rate cut, holding steady at 4% isn’t necessarily bad news for buyers.”
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“It shows the Bank of England is taking a cautious approach to stabilising the economy, which can help create more predictable mortgage conditions in the long run. We’re still seeing competitive rates across the mortgage market, which is encouraging for those looking to buy or remortgage.”

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To speak with a mortgage adviser about the changing interest rate and how it may affect you, please call us at: 0800 292 2557

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