BoE rate rise - "inevitable" but shouldn't harm the mortgage market

16 December 2021

John Phillips, national operations director, Just Mortgages said: “Although a slight surprise that it has happened this side of Christmas, an interest rate rise was inevitable.

“With the cost-of-living surging by 5.1% and concerns around the Omicron variant, the Bank of England had to act.

“However, rates have only risen to 0.25% and the mortgage market shouldn’t be massively impacted in the short term.

“While rates on most products will rise, the amount repaid per month is unlikely to drastically increase to the point borrowers can longer afford the mortgage. Competition between lenders will keep rates relatively low, and this is unlikely to curb the rampant demand for houses.”