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    Tag: bank of england

    Mortgage rates drop to lowest since 2023 – is now the time to secure yours?

    Posted on by Georgia Flatley

    The Bank of England’s decision to cut rates to 3.75% could open new opportunities for prospective homeowners, current homeowners and those looking to remortgage.

    What does this drop mean for prospective homeowners?

    Lower interest rates means that the cost of borrowing cheaper, reducing monthly mortgage payments and making home ownership more appealing for first-time buyers.

    Although this is a positive, some lenders may still be cautious. Factors such as affordability checks, credit history, and market uncertainty can influence lending decisions, so it is still important you are prepared in advance to present yourself as a reliable borrower.

    It’s also important to factor in all costs – initial fees such as your deposit, solicitor charges, and other expenses should be factored in to ensure your financial stability. Read our guide to buying your first home here.

    What does this drop mean for those on fixed, variable or tracker mortgages?

    For those on variable or tracker mortgages this change should take effect immediately and you’ll notice a reduction in your monthly rates from January onwards.

    For those with fixed rate mortgages, whether you are looking for your first home or your fixed rate is coming to an end, you should start to see these rates coming down.

    What does this drop mean for those looking to remortgage?

    For those looking to remortgage, the interest rate drop could lower monthly costs compared to previous deals. If you are currently on a variable or tracker mortgage, now could be a good time to switch to a fixed rate in order to secure your finances and ensure the stability. However, it’s worth noting that rates could fall further in the next six months, so timing and careful consideration are key.

    If you’re planning a home renovation or want to release equity for other purposes such as funding education or making a major purchase, now could be an ideal time to remortgage. Lower interest rates can make borrowing more affordable, helping you access the funds you need while keeping monthly repayments manageable.

    Get in touch

    With the constantly evolving interest rate landscape, it can be challenging to know which option is best for your circumstances.

    At PM+M, our expert mortgage director, Mark Chadwick, can offer you tailored recommendations on the most suitable mortgage products based on your circumstances and the latest rate developments.

    For further advice and to explore your options, please contact Mark Chadwick by clicking the button below.

    PM&M Mortgages Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority.

    YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

    Market update: what’s happening and what it means for you

    Posted on by Rebecca Campbell

    As the summer months rolled in, global financial markets seemed to take a breather from the drama of trade tensions and political headlines. Instead, investors shifted their focus back to the basics: how companies are performing, how economies are growing, and the ongoing excitement around artificial intelligence (AI).

    Economic overview: mixed signals across the globe

    While most regions saw little change in economic growth, the United States raised some eyebrows. A major revision to job data revealed fewer new jobs than previously thought, and economic activity slowed during the summer. This led to increased concern about the health of the US economy.

    The US dollar, which had been weakening throughout 2025, found some stability during the quarter. It even regained some ground against the British pound, which is important for UK investors with exposure to US assets.

    Inflation: a growing concern

    Inflation (how fast prices are rising) is becoming a bigger issue, especially in the UK. We’ve been watching this closely, and now it’s clear that inflation could reach double the Bank of England’s target before the end of the year. That means everyday costs could continue to rise, affecting everything from groceries to housing.

    In the US, inflation is also creeping up. However, many companies are choosing to absorb these higher costs themselves rather than pass them on to consumers, likely due to uncertainty about the economy.

    Bond markets react

    Bond markets, which often signal investor expectations about inflation and interest rates, responded to these concerns. Yields on longer-term bonds rose in many countries, reflecting uncertainty about future inflation. In the UK and US, government spending plans added another layer of complexity.

    In the US, the Federal Reserve (America’s central bank) responded to weaker job numbers by cutting interest rates in September, a move aimed at managing risk and supporting the economy. However, not all Fed officials agreed on the path forward, with some suggesting rates should fall below 3% by year-end.

    Back in the UK, the Bank of England faces a tough balancing act. Inflation is proving stubborn, especially in areas like housing and services, making it harder to decide whether to raise or lower interest rates. This uncertainty caused the UK bond market to shift slightly, as investors tried to make sense of the situation.

    Stock markets: AI and emerging markets shine

    Global stock markets saw a shift in leadership this quarter. The US continued to perform well, driven by enthusiasm around AI and related investments. But it wasn’t the only star.

    China stood out, with its tech sector attracting investors thanks to lower valuations compared to the US. Taiwan and South Korea also delivered strong returns, although India’s stock market lagged behind.

    Closer to home, UK and European markets made gains, especially among larger companies. Japan’s market also picked up, helped by a new trade deal with the US and strong company fundamentals, including widespread share buybacks.

    Looking ahead: what should investors expect?

    The more positive mood over the summer has pushed many stock markets into double-digit returns for the year so far. However, UK investors with overseas holdings may have seen some of those gains reduced due to the weaker pound.

    There’s an interesting contrast between stock and bond markets, especially in the US. While bond investors are worried about slowing economic growth, stock investors remain optimistic, focusing on AI innovation and increased merger and acquisition activity.

    Bond markets often spot trouble before stock markets do, but they can also overreact. In the UK, bond investors are more focused on inflation and how it might be controlled without hurting the economy.

    As we head toward the end of the year, expect more headlines about inflation, interest rates, and economic growth. But remember: not all noise is worth reacting to. Staying focused on long-term goals and maintaining a well-diversified portfolio is often the best approach.

    Get in touch

    If you would like to discuss your investments in more detail, or require tailored advice specific to your situation, please get in touch by emailing financialplanning@pmm.co.uk or by calling 01254 679131.

    The value of investments can fall as well as rise. You may not get back what you invest.

    The information contained within this article is for guidance only and does not constitute advice which should be sought before taking any action or inaction.

    Interest rate cut opens new doors for mortgage holders – but for how long?

    Posted on by Rebecca Campbell

    The Bank of England’s decision to cut interest rates offers a long-awaited reprieve for mortgage holders and prospective buyers alike – but it also signals a window of opportunity that may be short-lived.

    For those on variable or tracker mortgages, this cut should provide an immediate reduction in monthly payments. For others approaching the end of fixed-rate deals, this could be the right moment to explore refinancing options that reflect a more favourable interest rate environment.

    Importantly, this move could help revive momentum in a property market that has, in recent months, been weighed down by affordability pressures and buyer hesitation. Lower rates improve affordability, particularly for first-time buyers and could stimulate renewed activity across all segments of the market.

    That said, lenders may be cautious in how quickly they pass on rate cuts through lower product pricing. While the announcement is positive, many borrowers will need expert advice to navigate what remains a competitive and complex lending environment.

    We urge clients to consider their options carefully. Making a smart decision now, whether locking in a new fixed-rate deal or reassessing borrowing potential, could lead to better outcomes in the months ahead. With inflation still influencing policy, this rate cut might not be the start of a sustained downward trend, so timing will be critical.

    Our advice remains clear: review your mortgage position early, understand your options, and seek tailored advice to make the most of today’s changing financial climate.

    Get in touch

    At PM+M, our expert mortgage adviser, Mark Chadwick, can offer you tailored recommendations on the most suitable mortgage products based on your circumstances and the latest rate developments.

    For further advice and to explore your options, please contact our mortgage director, Mark Chadwick, by clicking the button below.

    PM&M Mortgages Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority.

    YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

    Interest rate cut set to spark optimism across dealmaking landscape

    Posted on by Rebecca Campbell

    Today’s interest rate cut is set to spark optimism across dealmaking landscape, says Stephen Robinson – corporate finance director at PM+M.

    The Bank of England’s decision to trim interest rates today by 0.25% is sending a strong signal to dealmakers: the transactional environment is heating up.

    By lowering the cost of capital, I believe the move will breathe fresh life into business sales, acquisitions, and refinancing efforts – all areas that have faced headwinds from months of elevated borrowing costs. Lower rates are set to ripple quickly through the lending market, improving debt affordability and making leverage-driven growth strategies, from organic expansion to M&A, far more attractive.

    Crucially, the rate cut could act as a catalyst for deals that have been paused or shelved in recent quarters, especially in sectors where high financing costs have been a barrier to execution.

    Market watchers, including myself, are already predicting a renewed appetite for M&A, with both private equity and strategic buyers likely to re-enter the arena with greater confidence. For business owners eyeing an exit, this shift could mean heightened buyer competition, stronger valuations, and more favourable deal outcomes.

    Beyond direct transaction dynamics, the move may also push investors to rethink capital allocation. As yields on safer assets come under pressure, capital could flow toward higher-return opportunities – including acquisitions and growth-focused investments that were previously sidelined.

    While the cut itself may be incremental, the message is clear: the UK’s investment narrative is turning a corner and the window for action is opening. Those prepared to move may find the market more rewarding than it has been in years.

    Top tips to recession-proof your business

    Posted on by Rebecca Campbell

    With the worsening economic situation and Bank of England warnings that the UK will fall into recession this year, what does this mean for your business, and what can you do to limit the impact?

    As we all know, Russia’s invasion of Ukraine, soaring energy prices and multiple consecutive lockdowns have all played a part in the economic crisis which could lead the country into a recession later this year. To help you navigate successfully through these turbulent times, we have put together a list of top tips to ensure you, and your business, are prepared for the challenges which a recession may bring.

    Carefully monitor and manage your cashflow

    Managing and closely monitoring the cash flow of your business should be a top priority when preparing for a recession. Examine your outgoings – are some expenses higher than they need to be?  Are some of them ‘nice to haves’ rather than essential?  Is your bookkeeping fit for purpose? Do you produce profit and cashflow forecasts and adjust them for potential varying scenarios? Cloud accounting software gives you a ‘live’ picture of your cashflow – if you’re still using spreadsheets, you may not spot potential issues until it’s too late.

    • Move your clients to direct debit

    Introduce an effective credit control process if you don’t have one already, this way you can reduce the amount of cash you have tied up in debtors. A strong majority of small businesses in the UK still rely on cheques and bank transfers to get paid – we would recommend switching to a direct debit tool to automatically take payments, reducing the chance of getting paid late and improving cash flow.

    • Shorten payment terms

    Consider reducing your payment terms to collect your money more quickly – helping you fill any cash flow gaps. You may be worried that this may upset your existing customers, however, if you explain your reasoning, they should be understanding.

    • Keep close to your bank

    Keep in communication with your bank.  Manage their expectations carefully and keep them on side so that they will support you if you need to extend your borrowings.

    Focus on your people

    Staff retention should be at the forefront of your agenda when anticipating a recession. Your team are probably the essence of your company, and it will more important than ever to ensure morale is high. Although downsizing may be inevitable for some businesses during a recession, consider other options such as reducing hours and providing flexible options as an alternative, if possible. Focus on employee wellbeing and prioritising learning and development to help you be on the front foot as the economy recovers.

    Ensure your customers remain a priority

    Customer retention must remain a key focus during a recession. Invest in customer relationships, reward loyalty, communicate regularly and work hard to supply what your clients want in uncertain times. But be careful you don’t fall into the trap of heavy discounting.

    Don’t cut back on marketing

    In difficult times, when you may be trying to cut costs, reducing expenditure on marketing can seem like an easy fix. However, continuing to advertise during periods of disruption is important, as it will help to mitigate any drop in sales and ensure your brand awareness remains high.

    Get in touch

    If you would like to get in touch to discuss what you can do to recession-proof your business, contact your usual adviser or email enquiries@pmm.co.uk, and we will direct your query to the correct person.