Spanish bank, global lender
Mortgage rates in the UK have declined following recent market reactions to global conflicts and economic uncertainty. Lenders are passing on savings from falling swap rates, but geopolitical tensions continue to cause market volatility, impacting borrowing costs and demand for home loans. The Bank of England's upcoming rate decision remains a key factor.
Major central banks have held policy rates this week while signalling differing paths. The Fed has left its target at 3.5–3.75% under new chair Kevin Warsh and has tightened communications; the Bank of England has kept Bank Rate at 3.75% after a 7–2 hold vote; the Bank of Japan has raised its policy rate to a 31‑year high. Energy-driven inflation remains the common shock.