1 4 U Financial Solutions Ltd

18/06/2026

BANK BASE RATE REMAINS AT 3.75%

At today’s Bank of England meeting the Monetary Policy Committee (MPC) voted to keep the Bank’s Base Rate at 3.75% for the fourth meeting in a row.

This was the widely expected outcome from today's meeting, however, there is still uncertainty over the impact of high energy prices, and the Bank’s governor Andrew Bailey, said recent drops in oil prices were "encouraging" but high energy prices during the war had still left "inflationary pressure in the pipeline".

Inflation expectations by the end of the year are now lower than the Bank had thought in April, and interest rate policy, in the coming months would depend on the "scale and duration" of the higher energy costs and how much that filtered through to the wider economy through prices and wage demands. The committee is now forecasting that the rate will hit 3.25% in the final three months of the year, which is still above the Bank’s ideal target of 2%.

Today’s vote was 7 members voting to hold the rate and 2 voting for an increase.

17/06/2026

GOOD NEWS FOR INFLATION

Today’s inflation figure was relatively good news. Inflation had been expected to increase to 3.0% in May, but instead remained at 2.8%, unchanged from April.

This is welcome news not only for our pockets, when we go shopping, but also reduces the risk of interest rate increases.

At one point after the Iran conflict began, some Economists were predicting 4 increases of 0.25% each, to the Bank Base Rate, which did seem a little pessimistic, but now things are more optimistic with thoughts of potentially one increase by the end of the year.
The Bank of England meets tomorrow to decide on where they feel rates should sit, and the general consensus of opinion is that the risk of an increase being announced is very low, but we will update you on the outcome of the meeting when it's details are announced.

Over the past few weeks we had already been seeing lenders making small reductions to Fixed rates and this news, together hopefully a signed peace deal between the US and Iran this week, may prompt a few more cuts. Tracker deals have recently been popular with the lenders, with lower rate options than some Fixed rate deals. However, whilst some borrowers like them, they are not for everyone. For other borrowers stability and peace of mind are more important than the lowest rate.

In relation to the housing market, we had recently felt there was a slight reduction in house purchases for a few weeks, but that already seems to have been picking up again, with First-Time Buyers, Home Movers, and Landlords all active at the moment.

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.