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Inflation dropped lower than industry experts predicted in October. How has this impacted mortgage interest rates?

Inflation fell sharply to its lowest level in two years to 4.6% in October, surpassing the 4.8% figure many expert economists predicted. This drop is the largest single-month decline in the Consumer Price Index (CPI) since 1992, falling from 6.7% in September.

The sharp inflation drop is primarily due to cheaper gas and electricity prices. The outlook now is that with inflation under control, we can expect to see the Base Rate come down as soon as summer 2024.


How has this impacted mortgage interest rates?

When October’s inflation figures were published, the money markets reacted almost instantly. We saw five-year SWAP rates drop to 4.1%, and many Highstreet and specialist lenders reduced their product pricing in the following days. With lenders easing their pricing, plenty of new, competitive products are available on the market.

If you’re approaching your remortgage, now is the time to start reviewing your fixed-rate options. With many lenders reducing their pricing and looking for ways to improve their product offerings, you can secure a competitive deal and mitigate any unexpected changes in the market. If one becomes available, many lenders will allow you to switch to a cheaper rate before completion, giving you added financial security.

We are seeing an increase in landlords and homeowners interested in tracker or variable products. With the Base Rate set to decrease, many see these products as an opportunity to reduce their monthly mortgage repayments in the long term rather than fixing into a rate now when cheaper alternatives may become available. However, reviewing these options with an expert mortgage broker is essential. Your current monthly mortgage repayments on a tracker will likely be more expensive than what you could pay on a fixed-rate deal. 


What should landlords do next?

With rates starting to ease following the positive inflation news, it’s time to complete a property portfolio review. There are plenty of benefits to completing a review, such as new ideas for maximising the returns on your portfolio and confidence in your property investment decisions. A review also gives you an excellent opportunity to discuss your plans with one of our experienced brokers, who has a thorough understanding of the market and will be able to advise you on your best next steps.

To complete a review, request our property portfolio review form by emailing

Alternatively, you can get in touch with our brokers on 0345 345 6788 or by submitting an enquiry here.

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