Mortgage borrowers remain confident as renters under greater strain ahead of Bank Rate decision
With interest rates in the spotlight again, many homebuyers will be reassured that competition in the mortgage market remains strong
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Katie Wise
Commenting ahead of the MPC Bank Rate decision tomorrow, Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association (BSA) said:
“With interest rates in the spotlight again, many homebuyers will be reassured that competition in the mortgage market remains strong, A number of lenders have reduced mortgage rates in recent weeks, although what happens next will depend in part on how financial markets respond to the MPC’s decision on the Bank Rate tomorrow, and the outlook for inflation.
“Homeowners are also showing resilience, with nine in ten (89%) mortgage borrowers confident they can meet their monthly mortgage payments in the coming months, which is unchanged compared to before the Middle East conflict started.
“Renters, however, are starting to feel the squeeze with just seven in ten (70%) confident they can meet upcoming rental costs, down from 74% before the conflict.
“There still remains some uncertainty about the direction of the Bank Rate decision tomorrow. Markets are pricing in higher rates, but whether the Bank Rate rises, falls or is held at 3.75%, the mortgage market is continuing to function well.”
All figures are from YouGov Plc.
Contact: pressoffice@bsa.org.uk
Notes to Editors:
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 £677 billion and together with their subsidiaries, hold residential mortgages of £493.4 billion, 29% of the total outstanding in the UK. They also hold £495.6 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.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff. In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.
“With interest rates in the spotlight again, many homebuyers will be reassured that competition in the mortgage market remains strong, A number of lenders have reduced mortgage rates in recent weeks, although what happens next will depend in part on how financial markets respond to the MPC’s decision on the Bank Rate tomorrow, and the outlook for inflation.
“Homeowners are also showing resilience, with nine in ten (89%) mortgage borrowers confident they can meet their monthly mortgage payments in the coming months, which is unchanged compared to before the Middle East conflict started.
“Renters, however, are starting to feel the squeeze with just seven in ten (70%) confident they can meet upcoming rental costs, down from 74% before the conflict.
“There still remains some uncertainty about the direction of the Bank Rate decision tomorrow. Markets are pricing in higher rates, but whether the Bank Rate rises, falls or is held at 3.75%, the mortgage market is continuing to function well.”
All figures are from YouGov Plc.
Contact: pressoffice@bsa.org.uk
Notes to Editors:
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 £677 billion and together with their subsidiaries, hold residential mortgages of £493.4 billion, 29% of the total outstanding in the UK. They also hold £495.6 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.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff. In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.