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Interest rates move to 1.25%

The Bank of England increased rates again today, from 1% to 1.25%. It was not unexpected and a further increase is anticipated next month. Whilst it does not have a significant impact for most it is adding up to a significant amount when you consider this is the 5th rise in recent months.

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The Bank of England voted 6-3 in favour of a further rate rise taking the base rate from 1% to 1.25%. They also revised their predictions for inflation stating it will be above 11%. Not good news but not unexpected.

Voting

Of the 9 members voting the 3 that didn't support an increase of 0.25% were actually supporting an increase of 0.5%. This is the 5th increase in 6 months.

Predictions

Analysts continue to predict the rate will increase to as high as 4% by the end of 2023 with other analysts suggesting it could get as high as that by the end of 2022.

Still time to lock in a deal

For those at or near the end of their current mortgage deal, get in touch with your lender and find out what they can offer. In some cases, you can lock in a new deal up to 6 months before the current one ends. So it is always worth looking into.

Lee Wisener CeMAP, CeRER, CeFAP, CSME

Having worked in the mortgage industry for over 20 years I have always wanted to build a website dedicated to the subject. Also being a geek when it comes to the internet all I needed was time and I could both build the site from scratch and fill it with content. This is it!