google-site-verification: googlebc47d07320294fb4.html

Interest rates rise

The Bank of England has just made the decision to increase interest rates from 4.5% to 5%. This marks a 13th consecutive hike since rates were first increased in December 2021 from a low of 0.1% to 0.25%. 

This is also the fifth consecutive interest rate increase seen so far in 2023, which has followed the same pattern as 2022 which saw 8 consecutive base rate jumps. 

As a result, the current rate of 5% is the highest seen in over 15 years since April 2008 when the base rate also sat at 5%.
Bank of England

Source: Bank of England

CEO of Octane Capital, Jonathan Samuels, commented:

“As of yet, the Bank of England’s attempts to curb inflation haven’t quite gone to plan and so today’s increase was to be expected. 

While a half a percent jump may seem substantial, it should help the Bank of England regain a grip over the situation at hand, as currently, it trails the Federal Reserve and needs to catch up if we want to see inflation fall like it has in the United States. 

So all things considered, today’s increase is probably appropriate, although this isn’t the news the nation’s borrowers were hoping for.”

Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:

“So far the UK property market has weathered the storm of twelve consecutive interest rate hikes and while we’ve seen marginal signs of house price depreciation, there’s nothing to suggest a thirteenth increase will bring the walls crashing down around us. 

It’s also important to note that a third of homebuyers now own their house outright and so they aren’t feeling the strain of increased borrowing costs. 

That said, any base rate increase is sure to be passed on by lenders to the nation’s homebuyers and this is likely to mean higher borrowing costs and fewer available mortgage products. This will inevitably have an impact on buyer purchasing power and, as a result, we can expect to see more protracted transaction timelines and a further cooling in property values as the market continues to find its feet.”

Managing Director of Sirius Property Finance, Nicholas Christofi, commented: 

“Interest rates are now at their highest in over 15 years, but it’s not just the higher cost of borrowing that will be weighing on the minds of UK homebuyers, it’s the consistency at which rates are climbing. 

Many buyers are finding that, having agreed a mortgage in principle, the goal posts have already moved by the time they find their ideal home and they’re having to return to the drawing board to reassess just what they can afford to borrow.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“It certainly seems as though the Bank of England has lost its grip on inflation and so they’ve continued to pile more misery onto borrowers with yet another rate increase. 

This will do nothing to revitalise what has become a rather weary looking property market in recent months and is sure to dampen buyer demand as lenders pass on this increase in the form of higher mortgage rates.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“The market remains in fairly good form considering interest rates are at their highest since 2008 and we expect this will now bring about a reversal in market fortunes. 

The more inflated areas of the market, such as London, largely trailed their more affordable counterparts where pandemic house price growth is concerned.

However, buyers in these regions are better placed to absorb higher borrowing costs and so we expect the likes of the London market to remain largely unfazed going forward.

As a result, we expect stronger market performances to materialise compared to some of the other more affordable areas of the market.”

The post Interest rates rise appeared first on MoneyMagpie.

Original source: https://www.moneymagpie.com/make-money/interest-rates-rise

483 thoughts on “Interest rates rise”

  92. mikaspa.com
    Liu Jian은 약간 웃으며 “당신과 노인이 내각에 오는 것이 무슨 문제입니까? “라고 말했습니다.Liu Jian은 미소를 지으며 말했습니다. “폐하가 말한 것은 장관이 폐하보다 훨씬 열등하다는 것입니다.”

    Reply

  244. I like the helpful info you provide for your articles. I’ll bookmark your blog and take a look at once more right here frequently. I am fairly certain I will be told many new stuff proper here! Good luck for the next!

    Reply

  246. Hopkins is winding up a six-month mission, along with U.S. crewmates Victor Glover and Shannon Walker, and Japan’s Soichi Noguchi. Their replacements arrived Saturday on their own SpaceX capsule.

    Reply

  252. Wonderful blog! I found it while browsing on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thanks

    Reply

  258. Hmm is anyone else having problems with the images on thisblog loading? I’m trying to find out if its a problem on my end or ifit’s the blog. Any suggestions would be greatly appreciated.

    Reply

  267. It’s truly a nice and useful piece of info. I am glad that you shared this helpfulinformation with us. Please stay us informed like this. Thankyou for sharing.Check out my blog; flat belly diets

    Reply

  268. hi!,I like your writing very a lot! proportion we keep up a correspondence more approximately your poston AOL? I require an expert on this space to resolve my problem.Maybe that’s you! Taking a look ahead to peer you.

    Reply

  281. magnificent points altogether, you justgained a new reader. What would you recommend about yourpublish that you simply made a few days in the past? Any certain?

    Reply

  286. Hey! I just wanted to ask if you ever have any problems with hackers? My last blog (wordpress) was hacked and I ended up losing a few months of hard work due to no back up. Do you have any methods to stop hackers?

    Reply

  299. A fascinating discussion is worth comment. I do think that you need to write more on this subject,it might not be a taboo matter but typically people don’t speak about such subjects.To the next! Kind regards!!

    Reply

  300. Hello there! I could have sworn Iíve been to this blog before but after browsing through many of the articles I realized itís new to me. Nonetheless, Iím certainly happy I found it and Iíll be book-marking it and checking back often!

    Reply

  328. Hi! I could have sworn Iíve been to this blog before but after going through many of the articles I realized itís new to me. Anyhow, Iím definitely delighted I came across it and Iíll be book-marking it and checking back regularly!

    Reply

  330. It’s truly a nice and useful piece of info. I’m glad that you simply shared this helpful information with us.Please stay us up to date like this. Thank you for sharing.

    Reply

  343. Hey there! I know this is kinda off topic but I was wondering if you knew where I could locatea captcha plugin for my comment form? I’m using the same blog platformas yours and I’m having difficulty finding one? Thanks a lot!

    Reply

  344. Heya i’m for the first time here. I came across this board and I to find It really helpful & it helped me out much. I’m hoping to provide one thing back and aid others like you helped me.

    Reply

  356. I blog quite often and I truly appreciate your information. The article has truly peaked my interest. I will bookmark your blog and keep checking for new details about once a week. I opted in for your RSS feed as well.

    Reply

  368. Hey There. I found your blog using msn. This is avery well written article. I will make sure to bookmark it andcome back to read more of your useful info. Thanksfor the post. I’ll certainly return.

    Reply

  375. Mỗі hành trình là mỗі trải nghiệm hօàn t᧐àn mớі,ᴠớі những ngườі chưɑ bao giờ đі ѕẽ koһіểu đượｃ сảm giáⅽ đó như tһế nà᧐!Feel freee tоߋ visit my pɑցe :: Du lịch Đảo Nam Du

    Reply

  388. Whats Going down i’m new to this, I stumbled upon this I have discovered It absolutely useful and it has helped me out loads. I am hoping to contribute & help different customers like its aided me. Great job.

    Reply

  393. An interesting discussion is worth comment. There’s no doubt that that you need to publish more about this subject matter, it may not be a taboo subject but generally folks don’t talk about these issues. To the next! Kind regards!!

    Reply

  399. An interesting discussion is worth comment. I do believe that you need to write more on this subject matter, it may not be a taboo subject but generally folks don’t discuss such issues. To the next! Best wishes!

    Reply

  415. Heya i’m for the first time here. I found this board andI find It really useful & it helped me out a lot.I hope to give something back and help others like you helped me.

    Reply

  420. Hello there! This post could not be written any better!Reading this post reminds me of my old room mate!He always kept talking about this. I will forward this write-up to him.Fairly certain he will have a good read. Thanks for sharing!

    Reply

  447. What’s Happening i’m new to this, I stumbled upon this I have found It positively useful and it has aided me out loads. I hope to contribute & aid different users like its helped me. Good job.

    Reply

  451. It is in reality a great and helpful piece of information. I’m glad that you simply shared this useful information with us. Please stay us informed like this. Thank you for sharing.

    Reply

  453. I don’t even understand how I stopped up right here, but I assumed this put up was once good. I don’t recognise who you might be but definitely you’re going to a well-known blogger in the event you aren’t already. Cheers!

    Reply

  462. Once I originally commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get 4 emails with the identical comment. Is there any manner you may take away me from that service? Thanks!

    Reply

  467. Wow that was strange. I just wrote an really long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyway, just wanted to say superb blog!

    Reply

  473. Great post. I was checking constantly this blog and I’m impressed! Extremely useful info specially the last part I care for such information much. I was seeking this particular information for a long time. Thank you and good luck.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

+ +