BSA comments after Monetary Policy Committee increases Bank Base Rate
Paul Broadhead, Head of Mortgage and Housing Policy at the BSA has released the following statement on today’s Bank Base Rate rise.
Today’s MPC decision means the Bank Base Rate is now at its highest level for over nine years, although interest rates still remain low relative to their historic averages. The majority of mortgage borrowers will see no immediate impact on their household finances as two-thirds of existing mortgages are on fixed rates. Transaction levels amongst home-movers are already subdued, partly because of Brexit related uncertainty. How much rates will move in such a highly competitive market remains to be seen. Savers, many of whom have seen their income decimated over the last decade will welcome the rate rise, although lenders will need to balance the interests of savers and mortgage borrowers when making rate setting decisions