Mortgage rates

I suspect the Bank of England base rate will come down in December and if it does, then mortgage rates may edge down a bit. Normally when we are heading towards the end of the year some of the bigger lenders lower their rates to attract business and it may well happen again over the coming weeks.

Any positive news on inflation figures ie. below what's been forecast, adds weight to the possibility of further interest rate cuts by the Bank of England. It's a fine balance to strike, though, as inflation is still higher than the 2% target, so they'll want to ensure this doesn't reverse the downward trend of inflation getting where it needs to be. Fixed rate mortgage deals arguably already price in expected base rate decisions, but it may be that this news adds some downward pressure on fixed rates, too.

On Thursday morning, both Barclays and HSBC announced rate cuts. Inflation not rising as expected may be giving lenders a little more confidence than they had a week ago. However, many lenders are still apprehensive about the Budget so we're unlikely to see major moves until after the Chancellor has delivered her speech.

Today's inflation news has already sparked some movement, with Barclays and HSBC cutting rates this morning. This suggests lenders are gaining a touch more confidence, though they remain wary with the Budget looming next week.
You might see modest rate reductions before Christmas if the Bank of England cuts again in December. However, any savings could be offset by potential tax changes in the Budget. The bigger lenders often compete for year-end business, so watch for more cuts in the coming weeks, but temper expectations until we know what the Chancellor has planned.