Adam Oldfield, chief revenue officer at Phoebus, says:
“There was a lot of speculation ahead of today’s announcement and mostly in the opposite direction. Although the fall in the inflation rate is small, we have to take some comfort that it is at least in the right direction, especially given the global rate of inflation.
“This, along with the hint from the governor that the Bank of England may not have to increase interest rates this month while inflation is falling, could be the news many have been hoping for. Tomorrow’s MPC decision will be one we wait for with bated breath. However, mortgage rates have already been coming down but the dilemma regarding fixed rates is still one that is not easily answered. For a huge number of borrowers, the amount they are now paying for their mortgage is the highest it has been and managing monthly payments is no doubt a worry. This is reflected in the increase in arrears, which is a problem that lenders will have to manage carefully.”