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Mortgage warning as experts give their grim verdict on when interest rates will fall

Consumer finance experts are warning of an economic crash landing amid predictions the Bank of England will delay interest rate cuts.

Rising mortgage arrears, personal and business failures have sounded alarm bells among brokers, banks and building societies.

Industry experts argue the governor of the Bank of England, Andrew Bailey, and the Monetary Policy Committee (MPC) have space to cut the base rate in May.

However, a number believe that any cuts could be delayed to later this summer and the autumn, causing real hardship for millions.

Samuel Mather-Holgate, Independent Financial Advisor at Mather and Murray Financial, believes the first rate cut won’t come until August, he said: “Members of the Bank’s Monetary Policy Committee seem completely unable to see the pain being inflicted on homeowners and businesses by higher rates.”

Stephen Perkins, Managing Director at Yellow Brick Mortgages, warned: “Despite all the positive signs around inflation … when the chips are down the Bank of England could still be slow to react.”

He warned that delaying rate cuts mean they could come “too late for many households and businesses already on the brink”.

Lewis Shaw, owner and Mortgage Expert at Shaw Financial Services, said continuing with high interest rates means “we’ll see a bad economic situation get worse”.

Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said: “We needed a rate cut yesterday, but I don’t envisage one until mid to late summer unfortunately.”

Ross McMillan, owner and mortgage advisor at Blue Fish Mortgage Solutions, warned: “With Andrew Bailey and his cautious cohorts at the helm, it sadly appears more likely that we may not get what the UK economy and beleaguered borrowers desperately need until we are deep into the Summer.”

And Craig Fish, Director at Lodestone Mortgages & Protection, said the failure to make urgent cuts risks disaster.

“For once they need to put on their big boy pants and make a decision for the good of the UK. To delay the decision to cut could be the final nail in the coffin for the UK economy,” he said.


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