Building Societies Association Comments on the MPC’s decision not to change the Bank Rate from 5.25%
Commenting on the MPC’s decision not to change the Bank Rate from 5.25%, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:
“It was widely expected that the MPC would hold the Bank Rate at 5.25% but it now looks like it could cut in coming months. The anticipated cuts later in the year have already seen a reduction in mortgage rates, which has led to an improvement in consumer confidence in the housing market.
“This month fewer people said they are concerned about being able to pay their mortgage, with 90% saying they are confident that they can maintain their mortgage payments – an increase from 85% in December 2023¹.
“Although mortgage affordability remains the biggest barrier to buying a home, it is reassuring that this has fallen significantly over the past six months, from 71% in September 2023 to 62%.¹”
Notes:
- BSA Property Tracker Report.
- The Building Societies Association (BSA) represents all 42 UK building societies, as well as 7 credit unions. Building societies have total assets of over £507 billion and, together with their subsidiaries, hold residential mortgages over £375 billion, 23% of the total outstanding in the UK. They hold over £370 billion of retail deposits, accounting for 19% of all such deposits in the UK. Building societies account for 40% of all cash ISA balances. They employ around 51,500 full and part-time staff and operate through approximately 1,300 branches, a 28% share of branches across the UK.
