Today there has been another increase of 0.5% on interest rates by The Bank of England. This brings the rate to 3.5%, which is the highest level it has been in 14 years. This will mean even higher mortgage monthly repayments for some homeowners and those with loans. However, those with savings accounts may see these rates increase too.
“Inflation - the rate at which prices rise - has been increasing at its fastest rate for 40 years as the cost of food and energy soars.
Raising interest rates should, in theory, encourage people to borrow and spend less and save more. This should help bring down the rate of inflation.
Announcing its latest rise, the Bank indicated it was likely to continue to increase interest rates next year.
It means that homeowners with variable rate mortgages or first-time buyers looking to get on the property ladder could face higher costs.
Following the most recent rate rise, people on a typical tracker mortgage will pay about £49 more a month while homeowners with a standard variable rate mortgages face a £31 jump.”
Are you thinking of buying your first home or changing mortgage deals? Call us today and we can pass you across to our independent mortgage advisors.
Source: BBC News.
Share this with
Email
Facebook
Messenger
Twitter
Pinterest
LinkedIn
Copy this link