Menu
Wed, 12 June 2024

Newsletter sign-up

Subscribe now
The House Live All
Britain’s Chemical Industry Fuelling UK Growth: A Plan for the Next Government Partner content
Economy
Communities
Harnessing North East Devolution Partner content
By Port of Tyne
Communities
Construction sector could cut prison leaver unemployment with right support Partner content
Economy
How the next Government can start planning for growth Partner content
Economy
Press releases

BSA comments on the MPC's decision to keep the Bank Rate at 5.25%

Building Societies Association | Building Societies Association

2 min read Partner content

Commenting on the MPC’s decision not to change the Bank Rate from 5.25%, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:

“Today’s decision to keep the Bank Rate at 5.25% was widely expected.

“For many mortgage borrowers it might feel like we’ve finally turned a corner, with inflation reducing and new mortgage rates nudging down. However, whilst the Bank of England’s Financial Policy Committee recently reported fewer households with significant financial vulnerability, we’re not out of the woods yet.  Almost half (around 45%) of today’s fixed-rate mortgages are on rates agreed before the Bank Rate started to increase in December 2021. Borrowers on these mortgages will be coming off their fixed rates in the next three years, and should be preparing for a significant increase in their mortgage payments.

“So, whilst it was reassuring that in this month’s Property Tracker report 85% of borrowers say they are confident that they can maintain their mortgage payments, lenders must still be alert to those families and individuals who may experience financial difficulties in the coming months. Practical, tailored support will continue to be offered to anyone who may be struggling.

“For savers, there’s still a wide choice of accounts with attractive rates available. Shopping around can now make a sizeable, financial difference, particularly for those who are holding a large amount of savings in their current account.”

- Ends -

Contacts:

Katie.wise@bsa.org.uk / 020 7520 5904

Debbie.enever@bsa.org.uk / 020 7520 5926

Notes

  1. The results of the latest BSA’s Property Tracker survey were published on 7 December and fieldwork was undertaken between 1-4 December 2023
  2. The Building Societies Association (BSA) represents all 42 building societies, as well as 7 of the larger credit unions. Building societies serve around 26 million consumers across the UK and have total assets of over £507 billion. Together with their subsidiaries, they have helped over 3.5 million families and individuals to buy a home with mortgages totalling over £375 billion, representing 23% of total mortgage balances outstanding in the UK. They are also helping over 23 million people build their financial resilience, holding over £370 billion of retail savings, accounting for 19% of all cash savings in the UK.  Within this, societies account for 40% of all cash ISA balances
  3. With all of their headquarters outside London, building societies employ around 51,500 full and part-time staff.  In addition to digital services they operate through approximately 1,300 branches, holding a 38% share of branches across the UK.

Read the most recent article written by Building Societies Association - Building Societies Association Comments on the MPC’s decision not to change the Bank Rate from 5.25%

Categories

Economy
Associated Organisation
Podcast
Engineering a Better World

The Engineering a Better World podcast series from The House magazine and the IET is back for series two! New host Jonn Elledge discusses with parliamentarians and industry experts how technology and engineering can provide policy solutions to our changing world.

NEW SERIES - Listen now