Rate Cuts Fading Fast, Warns Equifax UK Ahead of BoE Decision
The prospect of interest rate cuts in the UK appears to be dwindling as households continue to face financial pressure, according to Equifax UK.
Ahead of the Bank of England's Monetary Policy Committee (MPC) decision on July 30th, the credit reference agency warned that borrowers on variable-rate mortgages are unlikely to see any reduction in their monthly repayments this year.
Paul Heywood, chief data and analytics officer at Equifax UK, stated: 'The door looks firmly shut on the prospect of rate cuts for the foreseeable future.'
The rising possibility of rate hikes is adding uncertainty to households, which are already feeling the squeeze due to affordability pressures. As a result, consumers are opting for longer mortgage terms to reduce monthly repayments.