Commenting on the MPC’s decision not to change the Bank Rate from 4.25%, Andrew Gall, Head of Savings and Economics at the Building Societies Association (BSA) said:     
 
“With ongoing geopolitical events and differing views on the MPC, particularly on the outlook for the labour market, it’s no surprise the Bank Rate remains at 4.25%.
 
“We still expect further Bank Rate cuts this year, but many first-time buyers will be disappointed by the delay. Since 2020, mortgage repayments for new homebuyers have risen by around 30%, now accounting for 22% of income*, meaning affordability is a major barrier to homeownership. 
 
“Building societies continue to find innovative ways to support aspiring homeowners, providing almost 37% of first-time buyer mortgages last year. However, more flexible mortgage regulation is also needed to give lenders more opportunity to offer real help.” 
 
*Source: BSA first-time buyer report – The Missing Millions  

Ends

Contact: pressoffice@bsa.org.uk

Notes:

The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £648.3 billion and together with their subsidiaries, hold residential mortgages of over £485.6 billion, 29% of the total outstanding in the UK. They also hold £485.7 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 47% of all cash ISA balances.