Commenting on the increase in the Bank Rate from 0.50% to 0.75%, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:
“Given the rising costs of living, including the increase in the energy price cap, rising prices and the tax increases coming in next month, alongside the uncertainty the Russian invasion of Ukraine is causing, the Bank Rate increase will be unwelcome news for many. It is helpful that eight in ten mortgage holders are on a fixed rate as these people will continue to pay the same each month until their fixed rate period ends. The 20% on variable rate mortgages are likely to see their payments rise, but whilst this is the third rate rise since December, the increase in their mortgage payments will be modest.
“Lenders are sensitive to the rising number of people facing a squeezed household budget and we hope the Chancellor will provide some additional support to households in his Spring Statement next week. Anyone who is worried about their ability to pay their mortgage, particularly on top of energy and food price rises, should get in touch with their lender early. Lenders will do everything possible to help.”
- Contacts – Tanya.email@example.com and Katie.firstname.lastname@example.org
- Paul Broadhead, Head of Mortgage and Housing Policy at the BSA is available for interviews on Thursday 17 March.
- The Building Societies Association (BSA) represents all 43 UK building societies, as well as 6 credit unions. Building societies have total assets of over £477 billion and, together with their subsidiaries, hold residential mortgages over £351 billion, 23% of the total outstanding in the UK. They hold over £328 billion of retail deposits, accounting for 18% of all such deposits in the UK. Building societies account for 40% of all cash ISA balances. They employ approximately 43,000 full and part-time staff and operate through approximately 1,380 branches.