Disappointing news for mortgage holders with no change to the Bank Rate

The Building Societies Association (BSA) comments on the “disappointing news” for mortgage holders with no change to the Bank Rate held at 5.25%.

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

“With inflation dropping to almost the 2% target, many mortgage borrowers might have been hoping for a cut in the Bank Rate today.  

“The decision to keep rates at 5.25% will be very disappointing news for them, as well as those looking to buy their first home. 

“With two of the nine members of the Monetary Policy Committee voting for a cut today, it is clear that some are holding out for more overwhelming evidence that inflation can consistently stay at or close to the target.  

“We still anticipate the Bank Rate will reduce this year; however, this is happening much later and slower than we had anticipated earlier in the year.

“Homeowners who are coming to the end of a fixed-rate mortgage this year, will need to prepare for an increase in their mortgage payments. 

“Anyone who is concerned that they may experience financial difficulties in the coming months, should contact their lender as soon as possible, preferably before missing any payments.

“They have a range of practical, tailored support available to anyone who may be struggling.”

Kindly shared by Building Societies Association (BSA)