Just Mortgages comments on CPI Inflation

20 August 2025

John Phillips, CEO of Just Mortgages and Spicerhaart, said:

“Another rise in monthly inflation takes us one step closer to 4% - double the bank’s illusive target and where their long-term forecasts suggest inflation will peak. While you can say that inflation is currently playing out according to the bank’s plan, it still remains ultra sticky, highly unpredictable and totally susceptible to both internal and external economic shocks. It likely explains why the recent interest rate cut was such a knife-edge decision, and yet so necessary to give some form of support to a struggling economy.

“While that 5-4 verdict likely irked many investors and economists, we remain hopeful for at least one more base rate cut this year – although this is totally reliant on how inflation plays out and how much fight the UK economy has left in it. Positive movement all helps towards improving conditions in the mortgage market and enables it to be that key driver in economic growth. While inflation continues to add pressure to households – particularly when doing their weekly shop – we continue to post positive numbers when it comes to buyer registrations, valuation requests or mortgage appointments. Lender innovation and affordability tweaks have certainly helped catch the interest of potential buyers and sellers. So has the proactive approach of brokers to engage with clients early, explore all options and support borrowers in the way that only they can.”