Today, the Bank of England have announced yet another interest rate rise, this time taking the figure to a 15-year high and raising rates for the 14th time in a row.
Commercial Director Damien Druce comments: “Personally, I liken the Bank of England’s Monetary Policy Committee review of base rate to Groundhog Day, like many others in the mortgage market, I am jaded further by this latest review. With inflation falling, albeit only slowly and possibly even temporarily, this was the perfect opportunity to hold at 5%. This increase of 0.25% doesn’t leave much more room for manoeuvre for future increases without significantly damaging the property market and dashing the hopes of better times for very many the length and breadth of the country. My feeling, unfortunately, is that the BoE is fast running out of options, who knows where they, and indeed the country, go from here…”
Director of Intermediaries Adam Tyler added: “Today’s announcement has really come as no surprise to anybody involved in the UK property market, as we see rates go back over 5%. The Lender and Broker community in the short-term lending sector are resilient as proven through many different adverse market conditions over the years. At Black & White Bridging our funding lines and rates available to customers are already set to absorb this latest increase and as such we are still seeing many property investors and developers seeing opportunities through our funding, that not only benefits the market, but can provide badly needed further housing stock across the UK.”
Lastly, Senior Lending Manager Heather Hancock responded: ‘Whilst potentially good for savers and those a little more well off, this is clearly not the move the property and mortgage market wanted to see the Bank of England take. Property transactions are often underpinned by aspiration and confidence and this latest hike won’t help in any of those regards.’
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