Look out for the BoE interest rate decision

THIS coming Monday, November 2, is an important date for those with mortgages and those who want them. The Bank of England will decide on whether to raise interest rates, lower them or keep them static.

The reason for the elevated interest rates has mainly been due to extremely high inflation, which has contributed to prices rocketing for household essentials, including food and energy.

Nathan Emerson, CEO at Propertymark, adds: “We are keen to see inflation drop, as this is essential to help ease the financial pressures on many households.

“There must be confidence in the economy, however the balance between inflation and interest rates is a very fragile path which must be very closely monitored and responded to.

“Households should never find themselves in a near impossible situation where they are impacted by high inflation and high interest rates to the point they cannot get by each month.”

Propertymark says that if you are a homeowner, you should keep an eye on the mortgage deal you have while checking whether there is another mortgage package that better suits your needs.

It is also vital to speak with your lender immediately if you are worried about being able to pay your mortgage as they have a duty to help where possible.

Nathan Emerson adds: “House prices have started to level off and in some cases head back down.

“However, it would be positive to see interest rates drop over the coming months, as this would release the financial pressures of the last year for many households.”

Rightmove’s mortgage expert, Matt Smith, says the average two-year fixed rate mortgage for those with a five per cent deposit is 6.32 per cent and 6.15 per cent for those with a 10 per cent deposit.