Update: The Bank of England has cut the interest rate from 4.75% to 4.5% to encourage spending and boost growth.
“Bad economic news has become good news for borrowers” – Perenna reactions to Bank of England interest rate decision
Reacting to the Bank of England’s interest rate decision, Arjan Verbeek, CEO of Perenna said:
“Bad economic news has become good news for borrowers. The known risk of a slowing UK economy has clearly trumped the unknown risk of rising global inflation on the back of a prospective trade war. Gloomier economic data closer to home, with UK economy failing to grow in the final months of 2024 and declining consumer confidence, clearly loomed larger for the MPC.
The news will be welcomed by those remortgaging, and those looking to get their foot on the ladder ahead of the Stamp Duty changes, supporting demand in the short term. But it won’t be a game changer for thousands of frustrated future homeowners who have to continue to postpone their dreams, even in cases where they have a sizable deposit, given the current rules the UK has around affordability. If the Government is determined to drive the growth that will benefit the next generation of homeowners, then we need to see regulations shift to support its aims. Turning words into action and reviewing the loan-to-income cap for lenders would be the right place to start.”
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