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MPC decision comment from Just Mortgages

22 September 2022

John Phillips, national operations director at Just Mortgages said:

“There was a certain inevitability to this latest 0.5% bank base rate rise although it’s worth noting that three of the MPC members voted for an even greater rise of 0.75% which would have taken us to 2.5%. That will however be no consolation to those watching their mortgage payments rise or seeing the sub four percent mortgage product they wanted being withdrawn from the market.

“Our brokers across the country tell us that remortgage business is continuing to gain momentum and with interest rates rising to 2008 levels and with no sign of stopping it’s easy to see why. Although house price growth is robust with year-on-year growth in excess of 15% borrowers are looking to secure an affordable rate rather than release equity in their homes.

“Rising house prices do offer something of an equity-based safety net to homeowners but this is often just a value ‘on paper’ and affordable and sustainable monthly payments is far higher on the list of household priorities. As the impact of fuel, food and energy price continues to hit the role of mortgages brokers will become more and more crucial.”