ACC OFF
This decision, which in light of the latest Covid data, has caught many off guard who thought the Bank would hold off until the New Year.
Undoubtedly this is a clear shot across the bows that shows that despite this, the Bank is prepared to get tough with inflation, and breaching the 5% level was always going to be the catalyst for a rise.
The reality is that this increase has already been priced in so will have little effect on mortgage products available now.
The real question is whether this is the start of a trend across the next 12 months and just how tough the Bank is prepared to get.
I expect to see an increased clamour for borrowers to fix in where they can, with many worried having not experienced an increasing rate environment before.
Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994.As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company.As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking.Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.
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