In the past many people in the UK steered clear of renting property, as most classed renting as dead money and preferred to put their monthly repayments towards the investment value of purchasing a property, since the difference between paying a mortgage and paying rent was minimal. However, over recent years the cost of purchasing a property in the UK, coupled with increased interest rates, has seen the monthly repayment on a mortgage by far exceed the monthly repayments on paying rent. Read the rest of this entry »
Popularity: 58% [?]
Many households and homeowners in the UK have already been pushed to the financial brink over the past year, with the effects of the fifth interest rate rise in a year taking its toll at the moment, and many mortgage payers struggling to keep up with rising repayments. Interest rates have gone from 4.5% since lat August to 5.75% by this July after a series of five 0.25% interest rate rises in the space of a year. According to some analysts it may not be over yet.
Following the release of minutes from the last Monetary Policy Committee meeting in July, a number of analysts and economists are now predicting a further interest rate rise of at least 0.25% in September, which would take the base rate up to 6%. The base rate already stands at its highest in the past six years. Those on variable rate mortgages will then have to face yet another rise in repayments, which could tip many over the edge in terms of finances according to officials.
Reports indicate that core inflation is at a ten year high, and that headline inflation has not fallen adequately, which signifies the need for another hike in interest rates.
One analyst stated: “CPI figures suggested core inflation pressures continue to build while energy and food prices remain under upward pressure from wholesale market developments and adverse weather. We therefore look for a further rate move in September, taking rates to six per cent.”
The latest MPC meeting minutes showed that the last interest rate rise was pushed through with a vote of 6-3, and this is partly what has given rise to predictions of further interest rate rises in the next couple of months.
Popularity: 62% [?]
The UK has seen a record five interest rate rises of 0.25% each in the last year, with the Bank of England taking the base rate from 4.5% last August to 5.75% this July through the series of interest rate hikes. According to some analysts and economists a further interest rate rise does not lie far off, and many expect a further rise to be announced after September’s Monetary Policy Committee meeting. This would take the interest rate – which is already at its highest in six years – up to 6%. Read the rest of this entry »
Popularity: 64% [?]
The Abbey has recently announced that it will be raising the interest rates on some of its mortgage products as a result of the current turmoil that has hit the financial markets in the UK. The credit crunch, which was sparked in the sub-prime sector in the United States and is now having global repercussions, has affected many lenders, with some withdrawing some mortgage products, some raising the interest rates, and some even going into administration. Read the rest of this entry »
Popularity: 92% [?]