Mortgage brokers have warned that borrowers will have to “slog it out” for longer, as stubborn inflation looks set to keep interest rates on hold.
Stephen Perkins, managing director at Yellow Brick Mortgages, said the latest inflation data would only deepen the Bank of England’s caution, making a rate cut on Thursday highly unlikely.
“The reprieve on mortgage rates will have to wait,” he said.
Rohit Kohli, director at The Mortgage Stop, pointed to persistently high inflation and rising geopolitical tensions as major concerns.
“With Middle East unrest pushing oil prices higher, inflationary pressure isn’t going away. There’s now a real risk it could start moving in the wrong direction again,” he warned.
Ben Perks, managing director at Orchard Financial Advisers, described the inflation data—holding firm at 3.4%—as a “crippling blow” for homeowners.
“Enervated borrowers will have to slog it out for a while longer,” he said.
“This kills off any hope of a base rate cut tomorrow. The MPC will stick with its usual ‘wait and see’ approach.”
Perks also urged the Monetary Policy Committee (MPC) to look beyond the data and consider the real-world strain on borrowers.
“They need to lift their heads and focus on the people they are meant to serve and support.”
The remarks come as pressure builds on the Bank of England to balance inflation control with growing signs of consumer distress.
