The UK economy grew 0.2 per cent between April and June but it "isn’t such good news for borrowers”, according to a mortgage professionals.
Following the Office for National Statistics revealing that the economy grew by 0.5 per cent in June, Lodestone Mortgages and Protection director, Craig Fish raised concern about the impact for those with mortgages.
“I suspect the twitchy fingers of the Monetary Policy Committee are already hovering over the increase button,” he stated.
“Let’s just hope the inflation data next week is better than expected in order to calm those twitchy fingers.”
Investing Reviews equity research analyst, John Choong, additionally warned: “Britons should be wary as the better economic outlook could push the Bank of England to take a more hawkish approach.
“Good news could be bad news for borrowers.
“This could see mortgage rates reverse course, having seen some relief over the past weeks.”
Meanwhile, R3 Mortgages founder and director, Riz Malik, said that, while it is challenging to get overly enthusiastic about growth numbers beginning with a zero, it underscores the resilience of the UK economy.
“Hopefully, the inflation data on the 16th will also exceed expectations and the Bank of England balance the good with the bad when considering rates,” he said.
Yellow Brick Mortgages managing director, Stephen Perkins, stated that the data shows that “even in poisoned soil something can grow, albeit only slightly”.
However, he went on to caution that this data for the second quarter and June came before the impact of yet more needless rate rises, so is not a true reflection of the economy today.
Looking ahead, SelfEmployedMortgageHub.com founder, Graham Cox, stated: “The acid test will be the second half of the year, as the recent steep interest rate rises really start to bite.”
Moor Mortgages director and lead adviser, Peter Stamford, also cautioned: “Does this mean the UK is back and booming? No, but it’s a good start.”
However, Wiltshire Wealth actuary and IFA, Daniel Wiltshire, added: “Another quarter of negligible growth is nothing to celebrate.
“The economy is laden with debt, the tax burden is at a 50 year high and interest rates are still rising. Where is the pro-growth agenda?”
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
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