The Bank of England’s Monetary Policy Committee kept the base rate at 5.25% this month, with 7 voting to hold and 2 to cut. That’s the sixth month in a row that it has remained at this level. The Bank’s governor, Andrew Bailey did also say, though, that he is “optimistic that things are moving in the right direction,” and that, “It’s likely that we will need to cut bank rates over the coming quarters and make monetary policy somewhat less restrictive over the forecast period – possibly more so than currently priced into market rates.”

In order for that to happen, he first wants to see more evidence of inflation coming down, which will include wage inflation. The latest data show wage rises remained at 6% rather than falling to 5.9%, as was expected.

The money markets are currently betting there will be two quarter percent interest rate cuts in 2024, with the first coming in either June or August. In the meantime, mortgage rates have crept up again this month but only by very small margins.

Below is a selection of this month’s best buys from Moneyfacts.co.uk:

Two-year fixed rates: 4.83% from first direct. Product fee £490. 60% LTV.
4.89% from Nationwide BS. Product fee £999. 60% LTV.

Three-year fixed rates: 4.73% from first direct. Product fee £490. 60% LTV.
4.79% from Nationwide BS. Product fee £999. 60% LTV.

Five-year fixed rates: 4.48% from First Direct. Product fee £490. 60% LTV
4.49% from Nationwide BS. Product fee £999. 60% LTV.

Discounted variable: 4.84% For 2 years. From Progressive BS. Product fee £0. 75% LTV.
4.99% For 3 years. From Newbury BS. Product fee £850. 75% LTV.

BUY-TO-LET (BTL)

Best two-year fixed rate: 3.79% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV.

Five-year fixed rate: 4.14% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV

Best Discounted variable: 5.19% For 2 years. From Mansfield BS. Booking £199, completion 2.50%. 75% LTV.

The information we provide is our personal opinion and should not be relied upon for financial advice. Should you need financial advice or guidance please contact an appropriate professional.