Halifax lowers mortgage costs as lenders rethink rate cuts amid Middle East conflict

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• Mortgage costs are not driven solely by domestic policy decisions but by global geopolitical events

  80% confidence

• Making small, optional overpayments when able helps reduce the balance and the impact of future rate moves

  80% confidence

• Markets have been expecting the Bank of England to cut rates further this year, but renewed geopolitical instability risks may make that path less straightforward

  80% confidence

• Some lenders have already paused or reconsidered planned rate reductions

  80% confidence

• Average five-year fixed deal came in at 4.89%, down from 4.99% previously

  80% confidence

• Swap rates have risen in recent days and some lenders had reconsidered previously planned rate reductions

  80% confidence

• If disruption to energy supplies or global supply chains feeds into higher inflation, policymakers may have to be more cautious about how quickly and how far interest rates come down

  80% confidence

• Prospect of a Bank of England base rate cut later this month now looking far less certain

  80% confidence

• Financial markets have significantly reassessed the likelihood of a quarter-point cut to the Bank of England's base rate at its next meeting

  80% confidence

• Swap rates have been rising sharply as conflict with Iran spreads across the Middle East, driving oil and gas prices higher and reigniting inflation concerns

  80% confidence

• Average rate for two-year fixed mortgage came in at 4.53% this week, lower than last week's 4.75%

  80% confidence

• Rise in swap rates suggests that rates for customers either re-mortgaging or purchasing a new home are likely to increase in the near term

  80% confidence

Data points we hold from this source