MorganAsh comment on BoE MPC decision

03 November 2022

Andrew Gething, managing director of MorganAsh said: “Despite the recent political turmoil, the underlying trend is for interest rates to remain high and hence mortgage rates to rise. This rise is no great shock and is here to stay. It’s certainly not helped with the Bank of England by its own admission “flying blind” ahead of the Government’s autumn statement.

“This will be little comfort to homeowners who’ve experienced rising mortgage rates. While some lenders may have already priced in this hike, this decision is a particular worry for those set to remortgage or the more than a million households on tracker and variable rate mortgages who will feel this almost immediately.

“As consumers contemplate the greater burden of new borrowing and battle against changing criteria and tougher stress tests, the principles of Consumer Duty and delivering good outcomes for customers have never been so important. Whether it’s providers, brokers or advisers, identifying and monitoring vulnerability will become a fundamental part of the process, not just to protect consumers but to prevent foreseeable harm and ensure compliance with the Consumer Duty regulations.”