The latest interest rate hike from the Bank of England (BoE), which today rose to 5%, is ringing alarm bells among advisers and providers as the potential for more people to fall into the category of ‘vulnerable client’ rises.
The BoE monetary policy committee (MPC) increased rates by 50 basis points from 4.5% to 5% today (June 22) marking its thirteenth consecutive interest rate increase and putting rates at the highest levels since 2008. Rate rises mean more than 1.4 million people on tracker mortgages and standard variable rate (SVR) deal will see an immediate increase in their monthly costs while clients looking to get a mortgage are faced with "added pressure" to grab rates while the can in the face of ever shifting offers from lenders. The current situation presents a Consumer Duty sticking point, acc...
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