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UK
Interest Rate: 5.5%
UK
Interest Rates Forecast: Possibility of a further rise
to 5.75% by August
Interest
Rates Rise To Highest Levels Since 2001
The
Bank of England has raised their base interest
rate to 5.5 per cent, in a widely-expected
move aimed at bringing inflation under control.
The
move is bad news for many borrowers, who are now facing
the highest interest rates since 2001. Borrowers with
a typical £100,000 repayment mortgage are likely
to face a hike of £16 a month in their payments
– on top of the previous three rises seen in the
last 10 months.
The
result is that many people are paying £50 - £100
per month more on their mortgage payments than they
were at this time last year. Attention is now turning
to the monthly inflation report for April, due to be
published on Wednesday next week. The figures in this
report should provide some strong clues as to the likelihood
of any further rises in interest rates.
Most
experts believe that interest rates are likely to peak
at 5.75 per cent.
Millions
Forced To Remortgage As Rates Rise
A
survey by price comparison site Moneysupermarket.com
has revealed that as many as seven million people could
be forced to refinance their homes if their monthly
mortgage payments rise by £100.
The
survey also showed that 14 per cent of home owners –
2.6 million people – would have to consider remortgaging
their homes if their mortgage payments went up by just
£50 per month, highlighting just how stretched
many homeowners' finances have become in the last year.
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