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Brokers expect September rate rise

  • 23/05/2011
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Brokers expect September rate rise
One in five mortgage intermediaries expects to see the first base rate rise in September 2011, with three quarters saying any rate rise would boost business.

The majority of brokers expect to see a rate rise in the Autumn as 38% predict the change will come in September or October, with 11% expecting a hike next month, according to Halifax Intermediaries.

Just 5% of brokers do not expect to see any change to base rate at all in 2011.

Just over a quarter of those questioned expect the Bank of England base rate to be at 0.75% by the end of 2011 but 41% expect it to double from its current rate to 1%.

Over three quarters of brokers believe that any increase in the base rate will boost the amount of business they write.

Ian Wilson, head of sales for Halifax Intermediaries said: “Planning for base rate rises is a difficult balancing act for brokers at the moment. Whether it happens next month or right at the end of the year, those that are already planning for it have a chance to get ahead of the game.”

Andy Frankish, managing director Mortgage Talk said no-one seems to be able to predict the next rise as this is an issue the world’s most educated economists are struggling with, but said September “is probably about right.”

“Brokers should already be well-engaged with their clients on this issue through regular emails, newsletter and a phone call at least annually, or as often as you can. To be honest, if you haven’t done anything to prepare for a rate rise, someone else could have already got there first,” he said.

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