"Flexibility and communication from lenders remains of utmost importance, helping both existing and prospective clients to borrow responsibly"

Paresh Raja, CEO at MFS: 

“The fact that the base rate now resides above 5% is not in itself a significant issue; this was the norm before 2008.

“But the jump up from a meagre 0.1% has come in a relatively short space of time (since December 2021) and has offered borrowers, investors and businesses little time to adapt to higher rates.

“Economists are suggesting the base rate may not rise as high or as quickly as once thought, and the rates available on products are starting to reflect that.

“There is some good news in that the jump was smaller than previously predicted, allowing lenders to reassess their rates accordingly.

“But right now, flexibility and communication from lenders remains of utmost importance, helping both existing and prospective clients to borrow responsibly without pulling products out from under them or being too rigid in the terms of loans.

“The market will realign to a higher base rate in due course, but today’s latest hike reaffirms that lenders must double down on a proactive approach to supporting property owners and buyers who will feel the effects of it.”