Paul Broadhead, Head of Mortgage and Housing Policy at the BSA commented:
“Whilst the MPC has decided to leave the Bank Rate unchanged for now, it has indicated that it is likely to be necessary to increase it over coming months, though probably not as rapidly as markets had anticipated.
“When the Bank Rate does begin to rise, most borrowers will be protected from any immediate payment shock. Eight in ten people with a mortgage have a fixed rate and all mortgages since April 2014 have been given on the basis that a borrower can afford a 3% increase in the Bank Rate in the first 5 years of their mortgage – the so-called affordability stress test
“The advice for any borrower who is worried about their ability to pay remains contact your lender early for help. Difficulties may arise due to the price increases for energy and food and the tax increases on their way in 2022, as well rising rates.”
Contact: Hilary McVitty 07741 984 042