Following the latest Bank of England Money and Credit stats which found net borrowing of mortgage debt by individuals amounted to £7.0 billion in March, a significant increase compared to February, John Phillips, national operations director at Just Mortgages said: “Outside of the stamp duty inflated peaks, March saw the highest spike in net lending as continually increasing house prices drove up mortgage borrowing.
“While approvals remain steady, the spike in net borrowing shows consumers are looking to borrow more than ever. Competition for houses is still driving up prices, and with more sellers than buyers this looks set to continue.
“With the Chancellor warning that there may be seven more base rate rises before the end of the year, taking it to 2.5%, advice from brokers has never been more critical. The ‘effective’ interest rate rose in March and with the ongoing cost of living crisis, borrowers will be looking for advice on how to achieve long-term security in household expenses.
“Anecdotal feedback from our network of brokers reveals a push towards fixing rates for longer in the hope that the financial landscape will be less turbulent in a few years.”