Just saw this linked on Reddit. The government have got all the big lenders to agree to a range of measures to support mortgage holders, including the option to switch to interest-only for 6 months to wait out the period until dates reduce, and various other borrower-friendly options. Have a look if you’ve been worrying about payments under the current rates
I disagree quite strongly.
Economies limping along at ~1% GDP growth per year and little or no GDP per capita growth can’t handle larger base rates for long. It’s a self-correcting cycle - if base rates remain elevated for too long discretionary spending will collapse and many, many businesses/loans/credit with it.
Rishi promised to half inflation not because he’s a financial genius with a secret trick, but because he knows two things: 1) what I said above, 2) inflation is often given as a YoY measure, so by December 2023 we’re measuring inflation above the 10% inflation of December last year, and the country can’t afford 10% inflation per year for long either.