The industry reaction to the Bank of England’s decision to increase interest rates to 0.25%.
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Bank of England Increases Interest Rates
Head of Corporate Partnerships at Sirius Property Finance, Kimberley Gates, commented:
“Any increase in interest rates is always going to cause concern from homeowners who will be understandably worried about the implications it might have on their monthly mortgage payments.
However, it’s important to remember that even with today’s increase, rates remain incredibly low and so there’s certainly no reason to run for the hills.
Stress testing will have ensured that any monthly cost increase is easily stomached by the nation’s homebuyers and many more will have also locked in fixed-rate terms which they will continue to benefit from.
While there will no doubt be some reaction by lenders in line with today’s increase, it’s unlikely to dampen our appetite for homeownership and buyers will continue to benefit from some of the lowest rates seen in recent times.”
Director of Henry Dannell, Geoff Garrett, commented:
“A rise in interest rates was expected to materialise early next year but fears over spiralling inflation seem to have forced the Bank of England’s hand into a pre-Christmas increase.
This is the first time since August 2018 that the cost of money has increased but this relatively small tweak will not, in all context, deter the current 'express train' that is the UK housing market.
The scales remain firmly tipped in favour of UK homebuyers and despite today’s increase, there’s arguably never been a better time to get on the property ladder.”