Inflation edged down in October, which is a positive, but it edged down slightly lower than the consensus of 3.5%, which is a potential negative. How might swap markets react and do you think we will see further cuts this week from lenders (after a busy few weeks of reductions) or potentially some hikes?

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mortgages

Inflation and mortgage rates

Anything that is outside of the predicted levels could impact the pricing of fixed rate mortgage deals. There are various factors at play when it comes to fixed rate mortgage pricing, but a big one to remember is that they often already factor in expected base rate changes. If those changes don't happen or are different to what was expected then this can impact pricing.

I'm the Director of Fairview Financial Management.  A Chartered Financial Planner, Independent Financial Adviser (IFA) and Whole of Market Mortgage Broker.

Our business specialises in helping people make the most of their money, so they can make the most of their time.

Ross Lacey

The mortgage market has been on a rate cutting spree, and lenders haven't blinked even when swap rates tried to spoil the party. October's inflation drop below 3.5% sounds promising, but markets rarely follow the script. Your mortgage rate reflects what lenders think happens next, not today's headlines. They've already baked their predictions into current pricing. The Budget could end this reduction streak; fixed rates price in future expectations, so any surprise could shift things quickly. If you're considering remortgaging, this stability might be temporary. Watch the Budget closely; it could decide whether rates keep falling or finally reverse course.

Here at Albion Financial Advice our emphasis is on high quality, face-to-face financial advice and an unrivalled level of customer service without obligation. This is pivotal to everything we do and is undoubtedly the reason why our customer base is expanding rapidly through recommendations from our clients. We are able to offer clients advice in each of the following areas: Business & Family Protection including Inheritance Tax on a “Best of Breed” approach and a comprehensive range of mortgages.

Dariusz Karpowicz

Inflation falling is good, but coming in above expectations is not. Markets trade the surprise, not the headline, so swaps could firm up rather than fall. After weeks of cuts, lenders may pause or even nudge rates up while things settle. With the Budget around the corner, borrowers shouldn’t assume this run of reductions will continue.

Pete Mugleston is an award-winning, CeMAP-qualified mortgage advisor and the Managing Director of Online Mortgage Advisor (OMA). With over 15 years of experience as a fully authorised and highly regarded mortgage expert, Pete has helped shape the industry by connecting customers with the right advice, no matter how complex their situation. He founded OMA to give more people access to specialist mortgage support, building a trusted network of over 300 experts and helping more than 600,000 customers. Pete also founded, and later sold, the award-winning brokerage Create Finance. He helped create the UK’s first direct-to-lender API for digital mortgage approvals and the LIBF-accredited OMA Broker Academy. As well as leading the creation of OMA’s industry-leading mortgage comparison tool, he is also one of the go-to voices in the industry. Outside of the mortgage world, Pete supports charities such as Georgie’s Gift and the World Clarity Foundation, helping to give back to causes he's passionate about.

Inflation and mortgage rates

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Ross Lacey

Director & Independent Financial Adviser at Fairview Financial Management

Dariusz Karpowicz

Director at Albion Financial Advice

Pete Mugleston

Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk

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