Falling rates boost confidence - Comment on the Bank of England money and credit figures for November from Adam Oldfield at Phoebus Software
04 January 2024
Adam Oldfield, chief revenue officer at Phoebus Software, says “The housing headlines this week, even in the mainstream press, have been dominated by news of falling mortgage interest rates and predictions that the Bank of England may soon start to bring the base rate down. With this news hitting the public conscientiousness these increases, for mortgage and remortgage approvals, shown in the Bank of England figures today should continue.
“The cost of living is still a concern for many, however, and when you consider the increase in consumer credit in November, it is evident that borrowers are turning to unsecured credit to pay household bills. It will be interesting to see how this figure changes when the December figures come out. Did consumers put Christmas on credit? The increase in this type of borrowing is something that will no doubt have a knock-on effect on mortgage affordability and lenders’ appetite for risk. So, it’s something of a double-edged sword. The inflation figures this month will be something that will be watched closely.”
