Mortgage Advice Bureau comments on October MPC decision

MAB comments on October MPC decision

Brian Murphy, head of lending at leading broker Mortgage Advice Bureau, said:

“With reports filtering through that the UK economy has finally clawed its way out of the double dip recession, the MPC were most likely to sit on their hands again this month and see what happens.

“There was vague speculation interest rates could have come down to 0.25% given the weak economic data, but this has been outweighed by the view that such a move wouldn’t have resulted in a net benefit overall.

“They will also have been aware that the Bank of England’s Funding for Lending Scheme has been seized upon by lenders and has resulted in a further fall in mortgage rates in the last month.

“We saw a pickup in application activity in September as average rates on two, three, and five year fixed rates have all continued to move down, and the percentage of borrowers choosing fixed rate deals on purchase business now stands at 86%, which is the highest for over three years.”

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