The majority of mortgage brokers are calling on the Bank of England to cut the Base Rate on November 6th, with a reduction of 0.25% seen by most as providing the biggest benefit to the property market, according to new research from HSBC UK.
Four in ten brokers (41%) believe a reduction from 4.00% to 3.75% would provide the biggest benefit to the property market — with one in five (18%) saying the rate should remain unchanged at 4.00%.
One quarter (25%) of brokers would like to see a deeper cut to 3.50% while only 16% favour a more aggressive reduction to 3.25%. Only 0.8% of brokers believe rates should rise to some degree.
Brokers say that a small rate reduction could help stimulate buyer confidence and affordability, supporting a smoother recovery in housing transactions after months of subdued activity.
The latest HSBC Broker Barometer also revealed strong broker optimism around Project 28, the industry’s technology and service transformation programme, which aims to make the mortgage process faster, simpler and more innovative. Brokers highlighted continued investment in digital innovation as a key driver of future market resilience, with many pointing to opportunities to streamline applications and improve client experience through new technology.
At the same time, brokers are calling for stamp duty reform to support first-time buyers and unlock movement in the housing chain, citing it as one of the most impactful policy levers available to stimulate the property market alongside rate cuts.
Chris Pearson, head of intermediary mortgages at HSBC UK, said: “Brokers are the beating heart of the mortgage market and are clearly signalling that a modest Base Rate cut, combined with ongoing innovation and stamp duty reform, would help put the housing market on firmer footing. Project 28 is central to ensuring that our broker partners and their clients experience faster decisions, better tools and greater certainty in what remains a challenging environment and with momentum could be a real game-changer.
“It takes far too long to buy a property at the moment. HSBC UK is fully behind this initiative, but we need everyone to lean in over the next few years to make the aims of Project 28 a reality.”
