Comment on Base Rate decision from Tanya Toumadj, CEO at Mortgage Broker Tools

Tanya Toumadj, CEO at Mortgage Broker Tools, says:

"It was somewhat of a surprise that the Bank of England chose to hold the Base Rate at 0.1% this month and many lenders have already increased the cost of mortgages in anticipation of a rising rate environment. This trend is only going to continue as inflationary pressure mounts and it seems that rates are only likely to move in one direction in the new year. As mortgages become more expensive, there is a bigger squeeze on affordability and this puts greater onus on borrowers shopping around to find a lender that best suits their circumstances, as the latest MBT Affordability Index data shows the choice of lender makes a difference of more than £117k to how much the average customer is able to borrow. This is where professional mortgage advice can make such a difference for homebuyers. With access to technology and tools that research options across the whole market, mortgage brokers can identify the best way for their clients to access the finance they need to purchase the home they want."

Published: 05 November 2021