Just Mortgages comments on BoE MPC decision

14 December 2023

Just Mortgages is one of the largest mortgage brokers in the UK, with more than 650 advisers working across both employed and self-employed divisions. It is part of Spicerhaart, the UK’s largest independent estate agency and property services group.

John Phillips, CEO of Spicerhaart and Just Mortgages said: “Instead of a cut and an early Christmas present or a rise and becoming the Grinch that stole Christmas, the Bank of England went with the widely expected option of holding rates for the third time in a row. Even with a number of positive indicators, particularly cooling inflation, the bank is still maintaining its position of ‘higher for longer’ - although many are predicting a rate cut early next year.

“Nevertheless, another hold brings continuity and stability and provides an opportunity for lenders to reassess and reprice. It will no doubt add further ammo to the ongoing rate war among lenders – which is great news for borrowers and prospective buyers. We mustn’t forget though that this will still be higher that what many clients perceive as ‘normal’, highlighting the real need for brokers to be proactive in educating clients on the realities of today’s market and what it means for them and individual situation.

“This will continue to be a big focus for the year ahead, as affordability will likely remain a key challenge for many borrowers. There’s no question the successful brokers next year will be those that are getting the fundamentals right, having those deeper conversations and delivering a five-star service and experience – generating referrals and new business in the process. This is particularly pertinent with recent reports suggesting gross mortgage lending could drop in 2024.”