BoE rate rise comment

Following the Bank of England decision to raise interest rates to their highest level since 2009, John Phillips, national operations director at Just Mortgages said: “The increase in the base rate of 0.75% to 1% will not have come as a surprise to anyone as the Chancellor has warned that rates could hit 2.5% by the end of the year.

“However, coupled with the financial pressure of the cost-of-living crisis means that the pressure on household budgets is the greatest it has been for a decade.

“While consumers have little control over their energy bills, they do have the opportunity to secure long term security in the form of a fixed rate mortgage. As a result, our network of mortgage advisers report that conversations with borrowers around longer-term fixed rates have never been higher.

“Although rate uncertainly has historically dampened mortgage borrowing, robust house prices and a move by many to adapt their working lives to be more home-based is sustaining the market.

“If base rate continues to rise, and mortgage deals become more expensive and elusive, the need for professional mortgage advice will be essential in helping consumers maintain a sustainable household budget going forward.”