Bank of England base rate kept on hold again as NatWest lower mortgage rates

by Aaron Strutt

Jun 20 2024

The Bank of England’s Monetary Policy Committee (MPC) has once again voted to maintain the base rate at a 16-year high of 5.25%.

At its meeting ending on 19 June 2024, the MPC voted by a majority of 7–2 to maintain Bank Rate at 5.25%. Two members preferred reducing Bank Rate by 0.25 to 5%.

Yael Selfin, chief economist at KPMG UK, told the BBC that a rate cut "is still on the table," but "we continue to expect the first rate cut in August once the general election is over as inflationary pressures continue to ebb."

Twelve-month CPI inflation fell to 2.0% in May from 3.2% in March, close to the May Monetary Policy Report projection. Indicators of short-term inflation expectations have also continued to moderate, particularly for households.

NatWest lowers fixed rates deposit no base rate change

NatWest has lowered some of its fixed-rate mortgages despite the fact that the base rate has not changed. 

NatWest lowered some of its two—and five-year fixed rates available for property purposes by up to 0.14% and some of its remortgage deals by up to 0.17%.

Aaron Strutt, product director at Trinty Financial, says: “We went through a period about a month ago where there were a lot of rate changes, but there are not as many at the moment.

“The cost of funding mortgages continues to fluctuate, but two-year fixes are still priced around 4.8% and five-year fixes start from 4.3%.”

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The information contained within was correct at the time of publication but is subject to change.

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