Adam Oldfield, chief revenue officer at Phoebus, says:
“All in all the UK economy seems to be defying predictions with GDP up and now inflation easing more quickly than many had thought. Although the percentages are small it is a step in the right direction. Nonetheless, we heard only yesterday that real wages are struggling to keep up with inflation, so we have a way to go before that situation changes and people start to feel like they are in pocket rather than out. This will not be helped in the coming months if energy prices increase to the level that we have been told to expect.
“This is a crucial time for both lenders and brokers. Ensuring that existing borrowers have the best deal and that exposed borrowers are getting the best advice and help to try to ensure that the recent small rise in arrears isn’t an increasing trend.
“No doubt the question for many now is, will this drop in inflation be enough for the Bank of England to hold interest rates at their current rate, or will we still see another rise when the MPC next meets in March? As we head into spring, a traditionally more buoyant time for the housing market, this could be key for momentum.”