Bank of England increases interest rate

Although it was not expected until the new year, the Bank of England has increased the rate of interest for the first time in three years. This decision seems to be in response to the inflation rate of 5.1%, the highest it’s been in a decade, balanced against the concerns Omicron is having on the economy. However, increasing the rate from 0.1% to 0.25% isn’t exactly a hike, and it’s estimated to affect mortgage payments by an estimated £10-15 per month, with fixed-rate customers being largely unaffected in the immediate term. Overall, finance specialists seem to remain positive that the mortgage market will continue to stay strong. Kimberley Gates, head of corporate partnerships at Sirius Property Finance said: “ … it’s important to remember that even with today’s increase, rates remain incredibly low and so there’s certainly no reason to run for the hills...” 

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