BREAKING NEWS: What the Interest Rate Hold Means for Hull & East Riding Homebuyers and Sellers
Interest Rates Held: What It Means for the Hull & East Riding Property Market
The Bank of England held its base interest rate at 4.5% in its announcement yesterday – a decision that shaped conversations around the property market in Hull and the East Riding.
The base rate plays a key role in mortgage pricing, influencing decisions for homebuyers, sellers, and investors alike. While the decision to keep rates steady offered a sense of calm for borrowers, it also raised questions about what’s next – and whether a drop in rates might be on the horizon.
What Does This Mean for Buyers and Sellers?
For buyers:
With interest rates unchanged, mortgage rates stayed at familiar levels. Many lenders continued to compete for borrowers, so speaking to an independent mortgage adviser remained a smart move to secure the best deal. First-time buyers and movers still had to factor in affordability, but steady rates helped provide a little more certainty when making big decisions.
For sellers:
Buyer confidence remained key. While a rate cut might have sparked quicker action from potential buyers, the decision to hold offered a message of stability. Realistic pricing became more important than ever, especially with many buyers still conscious of borrowing costs.
Already Have a Mortgage? Here’s How You're Affected
- Tracker mortgages – These followed the base rate, so payments stayed the same – for now.
- Fixed-rate mortgages – If already locked into a deal, the decision didn’t change anything immediately. However, if rates were to drop later in the year, more competitive deals could become available.
- SVR or discount mortgages – These were set by individual lenders and often influenced by the base rate. With no change from the Bank, it was up to lenders to decide whether to adjust their rates.
What Does It All Mean for the Market?
Although the decision didn’t trigger instant change, it did create a more settled backdrop. If inflation continued to fall, rate cuts could have followed – potentially boosting buyer interest and market activity. On the other hand, if higher rates lingered, affordability concerns might have cooled the pace of sales.
The next Bank of England update is scheduled for May 8th, with many watching closely to see whether conditions would support a long-awaited cut.
Also on the radar was the Spring Statement, set to be delivered by Chancellor Rachel Reeves on Wednesday, 26 March – another moment that could influence the housing market.
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