{"id":773173,"date":"2026-09-17T03:00:10","date_gmt":"2026-09-17T03:00:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/773173\/"},"modified":"2026-09-17T03:00:10","modified_gmt":"2026-09-17T03:00:10","slug":"interest-rates-hold-expected-but-bank-of-england-facing-tough-choices","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/773173\/","title":{"rendered":"Interest rates hold expected but Bank of England facing tough choices"},"content":{"rendered":"

Households feel the impact of a rising Bank rate through higher borrowing costs, but can benefit from more generous savings rates.<\/p>\n

Given the global picture, and market expectations of a higher Bank rate, a host of major lenders have already increased the cost of new fixed-rate mortgages<\/a> in recent days.<\/p>\n

Andrew Montlake, chief executive of mortgage broker Coreco, said that the latest data showed that “the inflation dragon has not been fully slain”.<\/p>\n

“If inflation proves sticky, lenders’ funding costs stay under pressure, which makes cheaper mortgages harder to deliver,” he said.<\/p>\n

“We are already seeing lenders reprice upwards, so this will do little to calm things down. Borrowers should not panic, but anyone approaching the end of a fixed rate should start looking early, secure an option and keep reviewing it.”<\/p>\n

The average two-year fixed residential mortgage rate is at its highest since 11 May, at 5.77%, while the average five-year is at its highest since 8 November 2023, at 5.83%, according to financial information service Moneyfacts.<\/p>\n

Savers may be offered more generous returns, but the spending power of their savings could be eroded by the rising cost of living.<\/p>\n

“It’s almost impossible to time things just right, so I would urge households to focus on what’s best for them now, in the medium term and in the longer term,” said Harriet Guevara, chief savings officer at Nottingham Building Society.<\/p>\n

“For savers, regularly check that your savings are earning a competitive return and that you have the right balance between easy access and money you can afford to put away for longer.”<\/p>\n","protected":false},"excerpt":{"rendered":"Households feel the impact of a rising Bank rate through higher borrowing costs, but can benefit from more…\n","protected":false},"author":2,"featured_media":773174,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-773173","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/773173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=773173"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/773173\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/773174"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=773173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=773173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=773173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}