Private Finance has advised brokers to tell their clients to ignore the Bank Base Rate (BBR) and look at longer term swap rates when making decisions.
As the official BBR holds steady at 0.5% for the eleventh consecutive month, there has been discussion about potentially significant and rapid increases in interest rates on the back of rising inflation.
However, Private Finance has said buyers should not be discouraged from buying a property, just because a historically low BBR is likely to increase in the short term. The broker has urged homebuyers to base their affordability decisions on long term swap rates.
Simon Checkley, managing director of Private Finance, said: “If a mortgage based on these longer term rates can be afforded then we see no reason why a buyer should be put off a property purchase just because there is talk of increases in inflation and interest rates.”
