The mortgage expert at Rightmove says this week’s decision to hold Bank of England base rate was a foregone conclusion – but that isn’t the case next time.

Matt Smith, Rightmove’s mortgage expert says: “All eyes are on May’s decision where the current forecast is a second cut of the year. Since the last decision in February, average mortgage rates have trickled downwards slightly but pretty much stayed flat. 

“We’re seeing lenders try to price competitively where they can to capture business during some of the busiest months of the year for home-moving. 

“However, there currently isn’t much wiggle room for lenders to offer cheaper rates, and hopefully a second cut can spur forward another wave of falling rates, and bring average rates closer to 4% rather than 5%.

“Some lenders may have also priced their products to manage volumes of new cases, as they try to protect their operational capacity at the start of the year to process as many completions as they can ahead of the Stamp Duty deadline. 

“As the Stamp Duty deadline will pass soon, they could then release this capacity, and as a result we may see some lenders start to price even more competitively.”

Jason Tebb, president of OnTheMarket, says this week’s decision to hold has a silver lining.

“While a hold in rates will be disappointing for borrowers, it does suggest a welcome level of stability which was not apparent when inflation was in double-digits and the Bank was forced to respond with consecutive rate hikes.

“The trajectory for interest rates is downwards, but with global uncertainty and inflationary pressures these reductions may take longer to filter through than the markets previously thought. 

“The base rate reductions we have seen since August have boosted activity and transactions in the market, and further cuts, when they come, will bolster confidence.”

Jeremy Leaf, north London estate agent and a former RICS residential agent, adds: “Worries about the fallout from imminent increases in national insurance and the minimum wage are certainly weighing heavily on some when considering taking on extra debt. 

“However, activity has remained relatively resilient recently and prices, though softening a little, have held up well, particularly for houses.”