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Editor’s Note: Back to ‘the norm’…?

Rebekah Commane

Moments before we went to press, the Bank of England confirmed what many had predicted: a base rate rise of 0.25 per cent.

Mostly the mortgage market was unperturbed, believing this was simply a return to a more ‘normal’ level of 0.5 per cent, where the rate had stood for nearly a decade before being reduced to 0.25 per cent last year.

Due to the intense speculation preceding the rise, and the coverage it
received when it came to pass, it’s inevitable that mortgage borrowers will have questions and concerns about the implications, particularly people on variable rates and would-be first-time buyers. So brokers can prove their value by contacting clients to both educate them and allay fears.

Within minutes of the rate increase being announced, speculation had already moved on to the potential for a further rise in the near future, but we will let this one bed in for now.

It has to be said that our timing in going to press wasn’t ideal. These things are planned well in advance and, as a result, some of our industry comment does reference a ‘potential’ rate rise. Such is the nature of a print proposition! However, as always, our commentators nevertheless offer well-informed insight on the state of the market.

In the past week the Government has also completed its draft bill to ban letting agents’ fees. While some may fear that extra costs will end up in the laps of long-suffering landlords, hopefully this bill will be a positive for the residential mortgage market as those saving for a first home will have a little more change in their pockets to put towards a deposit — assuming rents aren’t pushed up as a result of the bill, that is.

This month’s mag is a whopper, full of news, including the reform of FSCS levies; features, such as our quarterly lending survey; and all the usual favourites. For starters, our cover feature analyses the potential shape of the mortgage industry in 10 years’ time.

So grab a cuppa and transport yourself to the late 2020s!



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