Sussex Mortgages in Focus: How the 4.6% Inflation Drop Alters the Landscape
UK inflation dipped to 4.6 percent in the year leading up to October, primarily due to a decrease in housing and household services costs. This news brings relief to many households in Sussex, even though consumer price inflation remains notably above the Bank of England’s 2 percent target.
For individuals with mortgages in Sussex, the impact of falling inflation holds significance. Over the past two years, rising interest rates have taken a toll on borrowers, especially those concluding fixed mortgage deals, facing substantial increases in repayments. The Bank of England has raised its central interest rate 14 times since late 2021, maintaining it at 5.25 percent since August. Analysts at Morgan Stanley anticipate a potential decrease to 4.25 percent by the end of 2024.
The potential relief for homeowners lies in the prospect of falling interest rates if inflation continues to ease. While mortgage rates reached nearly 7 percent in July, recent data from Moneyfacts indicates a shift, with the average two-year fixed rate deal at 6.21 percent and the average five-year deal at 4.9 percent as of Tuesday.
With the latest inflation figures from the Office for National Statistics, borrowers can anticipate further reductions in fixed-rate mortgages in the upcoming fortnight. This trend signals a positive turn for Sussex residents with mortgages, providing some financial respite in a market previously marked by elevated interest rates.Posted on: November 15, 2023, by : Gareth