1 4 U Financial Solutions Ltd

20/05/2026

INFLATION DROPS – HOW? AND WILL IT STAY DOWN?

The inflation figure for April is a bit of an anomaly.

We all feel that prices are going up, and especially when we go to fill up the car or work van with petrol or diesel. Diesel costs were up 34.1% and petrol costs were up 16.6% in April.

However, Ofgem reduced the Energy Price Cap by 7% from 1st April, which is the maximum price Energy companies can charge for Gas and Electricity. This was the biggest factor in reducing the overall inflation figure and was due to Government intervention to reduce bills. They moved 75% of the cost of the UK’s renewable energy obligation, from energy bills to general taxation. This means the costs will still be there but collected in other taxes rather than through the energy companies.

The timing of Easter also artificially affected the April figures.

So what is expected to happen to inflation from here?
Experts have warned that inflation will continue to rise as the war in Iran, which has caused the blockade of the Strait of Hormuz, continues to push up wholesale oil and gas prices. The Energy Price Cap is set to increase significantly from July, with suggestions that the price cap could be increased by 13%, for a typical household using both gas and electricity.

There are also concerns that higher fuel and energy prices will soon start to feed through to food costs and the price of other goods.

How is this all going to affect interest rates?
The next Bank of England meeting follows the next set of inflation figures due out for May. The May figures will affect the Bank’s decision, but this month’s figures being better than expected may reduce the likelihood of a rate increase being announced at the June meeting. The meeting following that will be at the end of July and with so many unknowns it would be premature to try to predict the outcome of that meeting.

If your current Mortgage deal ends in the next 6 months, it would make sense to have some initial discussions now, about the best way forward, rather than leaving it to nearer the time. It may be better to have something locked in, with the option to be able to change it again if rates improve.

07/05/2026

THANK YOU

We really appreciate the kind comments.

30/04/2026

BANK BASE RATE REMAINS AT 3.75%

I have not been listening to the news today, but I’m sure if I had, there may have been a few mentions of interest rates.

The Bank of England’s Monetary Policy Committee (MPC) met earlier today to agree the latest rate. Not unexpectedly, they voted 8-1 to hold the rate at 3.75%, with one member voting for a rate increase.

The uncertainty linked to the Iran conflict means there are likely to be some difficult decisions ahead, with inflation already up to 3.3% last month, a figure which was higher than expected.

On a more practical level, it has been interesting times, in the Mortgage Market, since I posted after the last meeting.

We have had daily interest rate changes, sometimes twice from the same lenders in a single day.

We have had a change from Fixed Rates generally dominating the top 10 lowest cost Mortgage deals, with hardly a Tracker deal in sight to Trackers taking the top spots and Fixed Rates relegated to further down the lists.

This is making it more difficult for borrowers to decide between risking a Tracker Mortgage to get the current cheapest option, or to pay more for the peace of mind of a Fixed Rate. We’ve been having many discussions on the subject, and there isn’t a right or wrong answer. Everyone has different views, as to which way they prefer to go. Wasn’t it so much easier to make decisions when Fixed Rates were often the lowest cost option, whilst also offering stability and peace of mind!

On a more positive note, the chaos of continual rate increases has subsided and over the past couple of weeks we have seen a number of lenders making some Fixed Rate reductions. This doesn’t mean that Fixed interest rates will continue to drop unless the crisis in Iran is resolved very soon.

The MPC said future interest rate decisions could depend on how strong the second-round effects are of higher global energy prices, which are seen in prices and wages. Andrew Bailey, the Bank’s governor, said: “It would be a mistake to wait to see the second-round effects before acting, because it would be too late.”

This would indicate that we can expect to see increases to the Bank Base Rate later in the year if the war continues.

03/04/2026

Happy Easter 🐰🐣🐰

We hope you enjoy a relaxing break with lots of chocolate.

The office will be closed on Monday 6th and Tuesday 7th, and re-opens on Wednesday 8th at 9:30 am.

02/04/2026

💐🪷THANK YOU 🪷💐

Our day was made brighter yesterday when we received these gorgeous flowers and chocolates from our very lovely client and friend..

We can't thank you enough, for your gifts, but even more so for your very kind and humbling words in the cards you gave us.

We are so grateful that you allowed us to share your journey, and that we were able to help. We look forward to seeing you again soon.

02/04/2026

25/03/2026

FEBRUARY INFLATION RATE UNCHANGED FROM JANUARY

February’s inflation figure remained at the 3% we saw in January, which was down from 3.4% in December.

Next month we will expect to see some impact on the figures, from the conflict in the Middle East.

The question is, how much of an increase will we see, and how will this influence the Bank of England’s Interest Rate decision, when they meet on 30th April? Their decision is also likely to be influenced by whether the war is still continuing or if a resolution has been found.

19/03/2026

INFLATION RISK AFFECTS BANK OF ENGLAND INTEREST RATE DECISION

The Bank of England has kept interest rates unchanged, with the Bank Base Rate remaining at 3.75%. Unusually, the vote among the nine members of the policy committee that sets rates was unanimous, with all backing the decision to wait and “assess how events unfold”.

Economists had been expected this outcome due to the escalating tensions in the Middle East, which have significantly affected global oil prices. Since the US and Israel’s strikes on Iran began, we have seen disruption around the Strait of Hormuz, which is a key trade route and carries around a fifth of the world's oil and gas.

The Base Rate, which affects Mortgage and Loan costs, peaked at 5.25% in late 2023, but gradually reduced to its current rate of 3.75%, as inflation has dropped closer to the Bank’s target of 2%. Inflation is currently running at 3%, well below its 11% peak, but is expected to rise, if the conflict in the Middle East continues and oil prices remain high.
The conflict in Iran could push inflation as high as 3.5% in July, the Bank of England has said. Governor Andrew Bailey said The Bank of England “stands ready to act” to keep interest rates at a level that will keep inflation under control.

Mortgage costs have been going up, as the markets had been expecting a rate cut today, before the Middle East crisis began. However, there are still reasonable rates available. If your current Mortgage deal is up in the next 6-7 months, I would suggest getting advice now. Better to have something booked in, with the option to make a change, if the situation improves, rather than waiting and having no option, but to take a higher interest rate, closer to, the date your current deal ends.