What the Bank of England's Decision Means for Your Finances as an Epsom Homeowner

Tue 06 Feb 2024

In the most recent update from the Bank of England, they've decided to keep the Bank Rate steady at 5.25%. This rate has stayed the same since August 2023. But what does this mean for you and your money?

Well, based on what's happening in the economy right now, it seems more likely that interest rates will go down in the second half of 2024, not the first. The experts are predicting that by the end of this year, the Bank Rate will be around 4.5%. That's according to the latest consensus forecast from January 2024.

If we look back at the forecasts from the past few months, we can see that expectations for interest rates have been getting better. Back in September 2023, people thought the Bank Rate would be 5% by the end of 2024. But now, it looks like it might be even lower.

It's important to know that there might be some ups and downs in the economy over the next few months. But even with interest rates going up, most mortgages in 2023 were on fixed rates. This means that people have locked in their interest rates, so they don't have to worry about changes in the future. In fact, 85% of mortgages last year were fixed rates, which helps borrowers manage any uncertainty.

This information comes from #Dataloft, HM Treasury (which looks at the average of what different economists think), and the Financial Conduct Authority (FCA). So, while the Bank of England's decision might seem like just another piece of news, it actually has a big impact on your finances. It's always good to stay informed so you can make the best decisions for your money.