The Bank of England (BoE) has kept the base rate at 5.25%, with important implications for mortgages and the UK economy in 2024. This BoE base rate level has had a direct impact on mortgage costs and on property purchase decisions in London.
What the BoE base rate at 5.25% means for UK mortgages
A high base rate translates into more expensive mortgages. Banks and lenders adjust their rates in line with the BoE base rate. As a result, monthly mortgage repayments are higher than in previous years.
However, this does not mean that buying a home is impossible. Many fixed rate products allow buyers to secure a competitive rate. It is important to compare the available offers with the help of a specialist broker.
The impact on the UK economy and the property market
High interest rates slow down the UK economy. Property demand has fallen compared with the peaks of 2021 to 2022. Prices have gone through a correction in some areas. However, London has shown greater resilience than other cities.
Experts expect interest rates to begin falling in 2024. Those buying now may benefit from future capital appreciation. Real Estate Xchange works with trusted mortgage brokers. Contact us for a free consultation.
