Brokers devided over next MPC vote

Research by Mortgage Express reveals brokers are divided over which way the next Monetary Policy Committee vote will go, with roughly the same numbers expecting an increase as a hold.

The lenders survey found that 40% of brokers expect rates to be increased to 5% at the next MPC meeting, while 42% predict the base rate to be kept at 4.75%.

Overall, 217 brokers were surveyed by Mortgage Express asking for their views on how the MPC would vote at the next meeting on November 8/9.

Despite the general feeling within the industry that the rate will rise 25 basis points, there is no clear indication from brokers which way they feel the decision will go.

Peter Charles, chief economist at Mortgage Express, says: With two members of the MPC having voted for an increase in base rate at the October meeting, many people have assumed that a rise in rate in November is a near certainty.

But the governor of the Bank of England has made it clear that a rise is not a done deal and that the balance between supply and demand remains even.

This also appears to be the assessment of mortgage specialists.

The one thing everyone appears to agree on is that rates are not going down in the near future.