Following the welcome news that UK inflation has now started to fall, financial analysts are stating that the Bank of England may not need to raise rates again in their monthly meeting on 3 August 2023. Inflation is now at 7.9% which is the lowest rate in more than a year. Almost immediately on release of this information the financial markets saw UK Swap Rates edge downwards on both 2 and 5 Year fixed rates showing how the news was received well on the money markets. A continuing reduction in swap rates could lead to more favourable pricing of fixed rate mortgage products which would indeed be welcome.
Spotlight On: Mortgage Affordability
When referring to ‘mortgage affordability’, many people immediately think of monthly mortgage payments. However, in the mortgage world, this term can also refer to the