BSA comments on the increase in the Bank Rate to 0.50%

The Building Societies Association (BSA) comments on the announcement by the Bank of England of the increase in the Bank Rate to 0.50%.

Paul Broadhead, Head of Mortgage and Housing Policy at the BSA, said:

“Given the rising costs of living, including the increase in the energy price cap that we have seen this morning and the tax hikes coming in April, the Bank Rate rise will be unwelcome news for many.

“It is helpful that eight in ten mortgage holders are on a fixed rate as these people will continue to pay the same each month until their fixed rate period ends. The 20% on variable rate mortgages are likely to see their payments rise, but whilst this is the second rate rise in three months, the increase in their mortgage payments will be modest.

“Lenders are sensitive to the rising number of people facing a squeezed household budget and the advice to anyone worried about their ability to pay their mortgage, particularly on top of energy and food price rises, is to get in touch with their lender early. Lenders will do everything possible to help.”

Kindly shared by The Building Societies Association (BSA)

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