Comment on BoE MPC decision

Following the Bank of England’s decision to raise interest rates for the eighth time in a row from 2.25% to 3.0%, John Phillips, national operations director at Just Mortgages said: “Given the current climate and the Bank of England’s mandate to keep inflation near 2 per-cent, many in the sector rightly predicted a further rate rise and by 0.75 per-cent. While the Bank of England may be stuck in limbo slightly ahead of the autumn budget, many lenders already priced in such a hike, which will negate any impact on current mortgage rates.

“Nonetheless, this is a very challenging time for consumers, especially for those that need to move rather than want. While the changes in government have helped calm rates and brought more products and lenders back to market, those needing to upgrade, downsize, relocate or remortgage are still facing a real price shock and rise in household outgoings.

“Our nationwide network regularly reports that the news of rate changes gives many homeowners the impetus to explore their options, assess their affordability and secure the best deal they can with sound financial advice. With the today’s announcement and continued uncertainty among your average homeowners, there’s no reason that won’t continue. Once again, brokers are best placed to provide that support and help homeowners navigate the changing market and demands of lenders.”