MAB comments on September MPC decision
Brian Murphy, head of lending at leading broker Mortgage Advice Bureau, said:
“It’s no surprise the base rate has been held again. There are a number of economic factors currently in play aimed at boosting growth, and the MPC needs to see what impact they have before making a major decision over the base rate.
“It is still waiting to see what effect the latest round of QE has, and we also have today’s announcement from the Government which details measures to slash unnecessary red tape across the planning system. These factors will take a while to filter through and it will be several months before we can realistically expect to see a change.
“A cut would benefit borrowers with mortgages linked to the base rate, but would hurt lenders – especially those in the mutual sector who are more reliant on savers and who have been doing their best to maintain the relative ‘health’ of the housing market.”