Keeping a close eye on, and acting to help, vulnerable borrowers has to be a priority in the coming months - Comment on the BoE money and credit figures from Richard Pike at Phoebus Software

Richard Pike, Phoebus Software sales and marketing director, says “Although mortgage approvals dipped in February the market is still looking remarkably healthy, in the scheme of things. There may have been some thoughts that, with the situation in Ukraine, the Bank of England might not have raised interest rates this month. However, with inflation racing away to 7.25% the committee had little choice once again.

“The impact of the increase in the base rate may not be dramatic in and of itself, but taken with the rising cost of living and, looking at the increase in consumer credit borrowing, it is looking like money is getting tighter all the time for many. For homeowners and those looking to secure a new mortgage rates are still low but, as we’ve seen in the last week, are already increasing. However, lenders need to lend and as such will not be looking to overstretch potential or existing borrowers at a time when household expenses are already being put under pressure. Keeping a close eye on, and acting to help, vulnerable borrowers has to be a priority in the coming months.”

Published: 29 March 2022