Rate change ''could have big impact on mortgages''
Wed 7th Nov, 12:25:59 GMT
A change in the base rate by the Bank of England could affect the range of mortgage products available from lenders, it has been claimed.
The Bank''s Monetary Policy Committee has held the rate at 5.75 per cent for the last three months after three increases earlier in the year and is scheduled to release its decision for the coming month tomorrow.
Andy Pratt, chief operating officer of mortgage advice firm Alexander Hall, said the outcome of that decision could compel lenders to consider the rates they offer on their mortgage products.
"The base rate change - if it does go down this week - could have a massive impact on the choice of products, because some [lenders] will follow it down and some won''t," he said.
He added that a "lot of people are waiting to see what happens and after that we''re going to get a flurry of change".
Mr Pratt argued that it is "absolutely imperative" that those looking for mortgages take impartial expert advice, commenting: "[Brokers] can provide mortgage advice across an independent range of products. That''s important because, at the moment, products are changing quite a lot."
The Bank''s Monetary Policy Committee has held the rate at 5.75 per cent for the last three months after three increases earlier in the year and is scheduled to release its decision for the coming month tomorrow.
Andy Pratt, chief operating officer of mortgage advice firm Alexander Hall, said the outcome of that decision could compel lenders to consider the rates they offer on their mortgage products.
"The base rate change - if it does go down this week - could have a massive impact on the choice of products, because some [lenders] will follow it down and some won''t," he said.
He added that a "lot of people are waiting to see what happens and after that we''re going to get a flurry of change".
Mr Pratt argued that it is "absolutely imperative" that those looking for mortgages take impartial expert advice, commenting: "[Brokers] can provide mortgage advice across an independent range of products. That''s important because, at the moment, products are changing quite a lot."
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