Last Thursday, the Bank of England’s monetary policy committee made the executive decision to increase interest rates for the first time in a decade – rising from an historic low of 0.25% to 0.5%. The move has been made to effectively balance inflation, GDP growth, consumer spending and inward investment, ensuring the economy is in a position of strength as the country prepares for the fiscal and political consequences arising from Brexit.
In light of rising inflation and stagnating economic growth, a rise in interest rates was somewhat of an inevitable decision. Nevertheless, it is important to note that the rise will place an added financial pressure on first-time buyers and buy-to-let investors needing to borrow money. Following the Bank of England’s decision to increase interest rates, our CEO Paresh Raja spoke with national and trade journalists offering his expert analysis on what the rate rise means for the property market. You can read his comments in The Mirror here. His thoughts were also featured in the likes of Mortgage Introducer, Finance Monthly and Bridging & Commercial.
As one of the world’s leading financial hubs, the volume of financial products available to brokers and intermediaries in the UK ensures the delivery of tailored solutions able to address the most specific and complex of cases in times of market movements. With over 100 exhibitors, this year’s Finance Professional Show on 8 November was a fantastic event demonstrating the full range of financial services available. MFS was proud to exhibit at the show, and it was great to see strong interest directed towards bridging, offering fast access to capital in a market renowned for its rapid movements.
It’s no secret that the bridging market is rising in popularity – the Association of Short Term Lenders (ASTL) has revealed that the value of bridging loans written in Q3 2017 has increased 38.9% compared with the same period last year. Moreover, applications to bridging lenders grew by 45.5% in Q3 2017, compared with the same quarter last year.
In light of these interesting developments in the market, the Autumn Budget on 22nd November takes on extra importance. Furthermore, with touted reforms expected for Stamp Duty, the Chancellor’s announcement could have a significant impact on the real estate industry. Immediately after the Budget, MFS will be producing a factsheet to help investors and property buyers to understand how any proposed changes will affect them.