MPC comment from John Phillips at Just Mortgages
Following the Bank of England’s decision to raise interest rates for a tenth successive time from 3.5% to 4%, we have a comment from national broker firm, Just Mortgages.
John Phillips, national operations director at Just Mortgages said: “This tenth interest rate rise in a row which takes the bank base rate to 4% is certainly headline-grabbing but the mortgage outlook is considerably rosier than three months ago with re-priced products and prudent lending still available across all loan types and sectors.
“Six months ago the media was awash with predictions of a housing market crash but this never transpired and house price predictions are now for a static or slight fall during 2023. What this should offer homeowners is reassurance that even if their monthly payments are higher, the value of the asset i.e. their home will remain robust.
“The UK has a massive network of affordable and accessible mortgage advice and we need to make it second nature that borrowers take advantage of this resource. The message we should be screaming from the rooftops is for existing and aspiring borrowers to seek professional independent advice to secure the best deal. Brokers need to be more proactive than ever in promoting themselves and building a relationship with a new generation of borrowers in this higher interest rate environment.”