Archive for the 'Interest Rates' Category |
The Bank of England has voted to leave its base rate at 5.5% in June. This is good news for mortgage holders, however commentators widely expect another rate rise this year. The base rate has risen 1% since August last year, but inflation is still strong, so another rise may be necessary.
The Bank of England has today voted to increase the base rate by a quarter of one per cent to 5.5%. This has brought the rate to its highest level since 2001. With inflation still higher than desired, the move was widely expected.
In terms of mortgages, if your interest rate follows the base rate, then you can expect an increase of around £16 for very £100,000 you have borrowed.
The Bank of England has kept the base rate at 5.25% this month. The rate has stayed at this amount for two months now, having last been changed from 5% to 5.25% on 11th January.
This is good news for mortgage holders for the moment, but with inflation still at 2.7%, well above the 2% target, many are expecting a rise to 5.5% in the not too distant future.
The recent fall in share prices would have meant a change in the base rate could have been quite risky this month. If things are a little clearer and more stable next month though, we could see a rise to 5.5%.
Despite some suggestion that the rate may have risen again this month, the Bank of England has today voted to keep the base rate at 5.25%.
This should please those on variable rate mortgages, while those soon coming to the end of 3yr fixed rate deals may have to find more money each month since the base rate was at 3.75% 3 years ago.
The Bank will release minutes from the meeting on 21st Feb, which will contain the vote spread across the members of the rate setting committee. This is often a good indicator for which way the rate is likely to head in the future.