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Bank Base Rate comment - Rob Clifford (Stonebridge)

Below is a comment on today’s decision by the MPC to increase Bank Base Rate from Rob Clifford, Chief Executive of mortgage and protection network, Stonebridge:

“As with recent increases to Bank Base Rate, there was more than a hint of inevitability about this decision given how high inflation remains and other wider factors including the US Federal Reserve’s decision to increase interest rates there earlier this month. That said, while the Fed hinted this could be its last increase for some time, there will be many who feel our MPC are not able to signal we are at the end of our own interest rate increase journey yet. The pressure continues to build on the Bank while inflation remains high, and its 2% target looks a long way away, which means we cannot rule out further increases in the months ahead.

“That being the case, there remains something of a disconnect between BBR and mortgage product pricing, although swap rates have also been rising in recent days. It’s a tricky mortgage market for existing and would-be borrowers to unpick, and the need for professional mortgage advice in this environment seems greater than ever. Movements in rates always hit the headlines, and can be of concern for borrowers, so advisers need to be using today’s announcement to make contact with their customer base and to outline the options that are available to them, particularly for those who are going to end up paying more as a result of today’s decision.”

Published: 11 May 2023