Inflation comment from Simon Webb at LiveMore
18 May 2022
Simon Webb, MD of capital markets & finance at LiveMore, the interest only mortgage lender that lends to people aged 50 to 90+:
“The latest rise in inflation to 9% will increase the chance of the Bank of England’s Monetary Policy Committee lifting the base rate in June, potentially by as much as 0.5%. This was the preferred option of three of the nine MPC members at their last meeting in early May. That will be a real blow for mortgage borrowers on variable rates whose monthly payments have potentially already gone up four times in five months.
“Now is the perfect time for borrowers to lock into a long-term fixed rate mortgage and this will be especially advantageous for borrowers aged 50 to 90+. Many of the upper part of that age group are unlikely to want to move home again so knowing exactly what their monthly payments are will give them peace of mind. As they move into their twilight years they won’t have to worry during these uncertain times if the Bank continues to raise the base rate.”
