Lenders 'uncertain' over rate setting

The current market uncertainty has meant that many mortgage lenders are now uncertain of how they should price their products, Alexander Hall has said.

As a result of such trends, this week's interest rate decision could have a crucial role to play in future rate pricing, the broker suggests.

For borrowers, the firm added, the uncertainty means that they should seek the help of brokers themselves more regularly.

"Everybody should take independent financial advice, particularly around mortgages. At this point in time, when there's a lot of uncertainty, I think it's absolutely imperative," said Alexander Hall chief operating officer Andy Pratt.

"A lot of people are waiting to see what happens with the Monetary Policy Committee this week, and after that we're going to get a flurry of change; not all lenders are going to follow the base rate down if it does move.

"Lenders are trying to find their own position in [the market]," Mr Pratt advised.

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