Following the Bank of England decision to increase base rate to 0.5%, John Phillips, national operations director at Just Mortgages said: “Although there may be some negativity around the decision to increase base rate, it will not dampen the desire to buy properties.
“UK inflation leapt to 5.4 per cent in December – the highest level in nearly 30 years – so the decision by the Bank of England Monetary Policy Committee is hard to argue with.
“Mortgages will become slightly more expensive, however competition between lenders should keep rates relatively low.
“The increase is unlikely to put anyone off buying and it highlights the need for advice from brokers. Fixing for longer terms may become the norm as interest rates are anticipated to continue rising in the coming years.”