BSA comments on the increase in the Bank Rate to 4.25%

The Building Societies Association (BSA) comments on the news of the increase in the Bank of England Rate to 4.25%.

Commenting on the increase in the Bank Rate from 4.0% to 4.25%, Paul Broadhead, Head of Mortgage & Housing Policy at the BSA, said:

“As household budgets continue to be squeezed, another Bank Rate increase will be an additional budget challenge for borrowers on variable rates and those coming off a fixed rate this year.

“It is positive that our latest figures show that around nine in ten homeowners are not currently concerned about their ability to make their monthly mortgage payments. 

“However, there are around 1.8 million households coming to the end of a fixed rate in 2023 and most will see a significant increase in their mortgage costs.

“On average this will be around £220 a month for those coming to the end of a two-year deal.

“Only time will tell whether these increases have already been factored into household financial planning. 

“Lenders remain alert to borrowers facing a payment shock and are ready to offer tailored support to anyone who may be struggling.”

The March Property Tracker survey fieldwork was undertaken between 1-2 March 2023. 

Figures based on a £130k mortgage for 25yr term at 75% LTV. 

Kindly shared by Building Societies Association (BSA)

Main article photo courtesy of Pixabay