UK inflation has fallen in the 12 months to May, hitting the Bank of England’s target for the first time in almost three years
Inflation in the UK has now dropped down to 2 percent, finally reaching the Bank of England's target. For the last few years, the bank has been striving to keep inflation low and stable after the Government set them a target.
This will have a direct affect on homeowners, as banks across the country use the base rate to set their mortgage rates for customers. Mortgage lenders will often change their fixed mortgage rates based on the Bank of England's base rate, and anyone who is on a variable rate deal will likely see their mortgage costs change as rates adjust directly in line with interest rates.
"While the news will be comforting for households, it is unlikely to result in an immediate rate cut tomorrow as services inflation remains stubbornly high at 5.7 percent and core inflation, which strips out the more volatile items such as food, alcohol and tobacco, has eased but continues to sit above the 3 percent mark.
"Slowing inflation is likely to be well-received by homeowners and buyers pinning their hopes on a summer interest rate cut," says Alice. "Mortgage rates have flipped-flopped over the course of the year as financial expectations shifted causing a headache for nervous first-time buyers looking to get a foot on the ladder and existing homeowners hoping for better deals as they come to refinance.
Mortgages House Prices Money Cost Of Living
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cost of living eases as inflation set to fall close to Bank of England targetThe forecast raises hopes of a cut in interest rates by the Bank of England
Read more »
Summer interest rate cut ‘possible’ as inflation eases, Bank of England boss saysThe Bank of England tells struggling firms to pass on higher costs to customers, signalling inflation being less sticky
Read more »
Inflation predicted to fall to 2% target in lowest reading for three yearsExperts suggest the annual inflation figure could hit the Bank of England's target level
Read more »
Spring bank holiday supermarket opening times for Aldi, Asda, Tesco and moreSupermarkets may open and close at different times on Bank Holiday Monday, May 27
Read more »
Serbia vs England LIVE SCORE: Euro 2024 latest as Jude Bellingham gives England early leadENGLAND are leading Serbia in their Euro 2024 opener in Cologne after Jude Bellingham’s 12th-minute strike! The Three Lions are looking to go all the way at a major tournament for the first t…
Read more »
Serbia v England betting offer: Get 50/1 on England to wear white with Sky Bet...
Read more »