MPC rate increase comment from John Philips at national brokerage Just Mortgages

04 August 2022

John Phillips, national operations director at Just Mortgages said: “This latest rate rise heralds the most important period for mortgage advice in a decade.

“I don’t think that anyone will have been caught off guard by the rate rise which the Bank Governor hinted at last month, but this is the sixth increase in a row and arguably the most significant in recent years as it brings us within touching distance of two percent. The last time we saw a base rate that high was December 2008 and in many ways there is more uncertainty now that there was then, even in the midst of the credit crunch.

“As mortgage rates rise, feedback from our network of brokers across the country reveals that they are working overtime to secure the lowest deal for clients before rates rise further and lending criteria tightens which will be exacerbated by this latest rise.

“There is no doubt that borrowers are confident in the value of their homes but they are becoming increasingly nervous about the impact of fuel, food and energy price rises on lenders affordability criteria and their potential to secure the loans they need at the price they want. Now, more than any time in the past decade, the knowledge and experience of professional mortgage brokers is crucial.”