The panel, chaired by AMI's Robert Sinclair, consisted of Charles Haresnape (Aldermore), James Chidgey (Nationwide), Martin Reynolds (SimplyBiz), David Whittaker (Mortgages for Business) and Rob Jupp (Brightstar Financial). While the panel were split when a rise would occur - with some saying an increase before the next general election was unlikely, and others suggesting that BoE Governor Mark Carney would hike the rate before Christmas - they were fairly unanimous in their opinion that it was not bad news for the mortgage market.
It was noted that rates should be raised slowly, to allow consumers the time to adjust to new, higher rates - but that historically mortgage rates have been much higher than they are at present and that the hysteria surrounding an imminent base rate rise and its impact is misleading.
Rob Jupp, CEO of Brightstar Financial, added:
"Intermediaries have nothing to fear from interest rate rises, especially in the form of clients on Standard Variable Rates who may previously have been apathetic about changing their deals. A small base rate rise of 0.25bps could be what they need to get them to come to intermediaries and get themselves a good deal."
