Pomp Properties - Book a Valuation

Interest Rates Rise... Again!

02nd February 2023

 by Adam Sheikh

The Bank of England today raised interest rates to 4% - a 14-year high and the 10th consecutive raise - making rates their highest since 2008 as double digit inflation continues to bite.

The Bank of England recently shocked the nation by raising the base rate to a whopping 4%, the highest it's been in 14 years! However, not all news is bad, as this rate hike may be the last of its kind for a while - both the Federal Reserve and the European Central Bank are predicted to increase their rates only slightly, if at all.

To make matters worse for some, mortgage costs have been steadily rising, with a number of fixed-rate deals expiring soon. But despite this, Chief Executive of Propertymark, Nathan Emerson, believes that the market is stabilising, and that there won't be any drastic increases in arrears or repossessions.

So, the money-savvy may take advantage of the situation and secure a long-term fixed-rate deal, such as Virgin Money's sub-4%, 10-year deal. But if you're stuck in a financial rut, don't worry - the Bank of England's decision may be the last of its kind for a while. Keep your chin up and stay financially savvy!