Interest rate decision could have 'massive impact' on mortgages

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When the Bank of England makes its base rate decision later this week there could be a "flurry of change" in the mortgage market.

That is according to broker Alexander Hall, which has asserted that should the base rate fall there could be "massive impact on the choice of products" available because some lenders follow the rate and some don't.

Chief operating officer Andy Pratt noted that because things are so uncertain at the moment it makes sense for prospective property owners to take financial advice to see which product will best suit them.

He said: "Everybody should take independent financial advice, particularly around mortgages. At this point in time, when there's a lot of uncertainty.

A lot of people are waiting to see what happens with the Monetary Policy Committee (MPC) this week, and after that we're going to get a flurry of change; not all lendersare going to follow the base rate down if it does move."

The MPC makes a monthly decision as to whether the rate should go up, down, or remain unchanged every month, with the next decision due on Thursday, November 8th. The last three decisions saw the rate remain unchanged.

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