Brokers have shared their views with Newspage on a new piece of mortgage-related General Election marketing from the Lib Dems.
One said: “The Bank of England is independent so blame it for how high and how fast it raised the base rate and the damage made to the economy as a result.”
A second added: “Unless people have been hiding under a stone for the past couple of years, they will already be bracing for higher mortgage rates. Political parties need to start better connecting with people rather than stating the obvious to borrowers.”
A third said: “The Lib Dems have misunderstood the mechanics of the mortgage market.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, says:”The Bank of England is independent so blame it for how high and how fast it raised the base rate and the damage made to the economy as a result.
“This is yet more hapless spin. Those coming off fixed rates prior to the July 4th election would have seen their rate increase no matter who is in government. Moreover, whoever is next in government will see many more borrowers have their payments jump over their first 5-year term.
“Even if the Bank of England reduces rates a bit this year as expected, no-one with a fixed rate prior to November 2023 is making a saving when their renewal comes, so this will be an issue until 2028 as we will not be seeing the super low rates we enjoyed for so long for at least another generation, if ever.”
Michelle Lawson, Director at Lawson Financial, adds: :”The Bank of England is supposedly independent so the colour in charge shouldn’t make a difference when it comes to interest rates. The Lib Dems appear to be trying to do what Rishi has done and claim full glory for bringing inflation down when it was the economy and markets that did that, in the same way that they sent inflation up. Unless people have been hiding under a stone for the past couple of years, they will already be bracing for higher mortgage rates. Political parties need to start better connecting with people rather than stating the obvious to borrowers.”
Justin Moy, Managing Director at EHF Mortgages, says:”The Lib Dems have picked a subject they have no track record of managing themselves. The Lib Dems have failed to understand that most borrowers with rates expiring between now and polling day refinanced their mortgages about 5-6 months ago. They’ve misunderstood the mechanics of the mortgage market. That says it all. Mortgage rate increases were inevitable. They were too low for too long and borrowers just got used to cheap finance.”
Craig Fish, Director at Lodestone Mortgages & Protection commented:”Interest rates were always going to increase and the fault lay firmly with the Bank of England.
“They were too slow to react to rising inflation and are now being too slow to react to falling inflation.
“These errors, coupled with geo-political events, are to blame, and the rates we had for so long following the Global Financial Crisis will never be seen again. Time to get used to the higher interest rate environment. Stop playing the blame game and just get on with solving the housing crisis.”
Bob Singh, Founder at Chess Mortgages:”Lib Dems? Who are they?”
Ranald Mitchell, Director at Charwin Private Clients, says:”More desperate and pointless electioneering from a party whose leader is so forgettable, I can’t even name them. It’s laughable how they state the obvious and take cheap shots at the economic and mortgage mess, all while conveniently pointing fingers at the current government. The pinnacle of farce.”
Samuel Mather-Holgate, Independent Financial Advisor at Mather and Murray Financial, adds:”This is easy pickings for the Lib Dems and it’s surprising Labour haven’t gone harder on this. If Sunak likes to take credit for reducing inflation, he can also take responsibility for higher mortgage rates. In reality, neither are his fault and are global symptons of post-Pandemic inflation mixed with a war in Europe. But just as war isn’t fair, neither is an election campaign.”
Ben Perks, Managing Director at Orchard Financial Advisers,says:”Whilst they are very much the underdog, the Lib Dems will gain a few votes from disenfranchised Tory supporters who can’t bring themselves to vote Labour.
“So it is good to see them highlighting the issues within the mortgage industry and being a thorn in the side of the government and holding them accountable.
“They highlight the severity of the problem well: 3,333 households a day are paying the price for Lizz Truss’s cock-up and it’s simply not good enough to stand by and pass the buck to the Bank Of England. Intervention and innovative schemes are needed quickly.”
