MPC interest rate comment from Just Mortgages

03 August 2023

Carl Parker, national director at Just Mortgages comments on the Bank of England’s decision to raise interest rates

Following the decision by the Bank of England to raise interest rates from 5% to 5.25%, we have a comment from national brokerage Just Mortgages.

Just Mortgages is one of the largest mortgage brokers in the UK, with more than 650 advisers across both employed and self-employed divisions.

Carl Parker, national director at Just Mortgages said: “Even with the positive news on inflation last month, the general expectation was that the Bank of England would continue its rate rising agenda. Last week’s news from across the pond of the Fed increasing its headline rate – despite the fact inflation was just 3% - further cemented this view.

“Thankfully the MPC mirrored the Fed’s call with only a 0.25% rise, rather than repeating its bumper rise in June. The hope is that because this was very much expected, it won’t spook the markets which is the last thing anybody needs. Even with the wider volatility, we are beginning to see some really positive signs. News of lenders improving rates – if only marginally for now, and a rise in transactions in June are both incredibly encouraging.

“It’s further proof to brokers that there’s still a market out there. In addition to those looking to remortgage, there are those that are driven to move and will do so regardless of the headlines in the national papers and the decisions of the Bank of England. With independent advice and access to the whole of market remaining critical in such a climate, brokers must remain proactive. Utilising all the tools at the disposal will be key to not only getting in front of clients, but in supporting more complex needs and cases.”