Steven Andrew, chief economist for fund managers ISIS
“We have held the view for sometime that this widely anticipated rise would constitute the summit. In our view a feature of this, and future cycles, will be that the peak in interest rates will correspond closely with peaks in demand growth.”
Simon Jones, director at Savills Private Finance
“I am sure that lenders will pass on the latest 0.25 per cent increase although our research reveals that if they were to do so, they would be pricing their SVR mortgages at 0.27 per cent higher than they were three years ago when rates were also 4.75 per cent.”
Michael Coogan, director-general of the CML
“The Monetary Policy Committee members have recently made a point of emphasising that it is not in the business of ‘clobbering consumers’. Equally, we all recognise that it needs to address inflationary pressures as it sees them. So the rate rise is no surprise.”
David Bitner, head of product operations for Bradford & Bingley
“While another increase will hardly be welcomed, our research reveals many borrowers were anticipating it and are not overly anxious about the resultant rises in their mortgage payments.”
Andrew Frankish, operation director at Mortgage Talk
“The decision to raise the base lending rate to 4.75 per cent on the 5 August will serve further to fuel growth in the remortgage market.”
Peter Brodnicki, chief executive of the Mortgage Advice Bureau
“We believe that anyone who does not have the appetite for a succession of rising monthly mortgage payments would be best advised to opt for a fixed rate mortgage now. We see the rates going in only one direction in the medium term.”
