"The Easy Way to Get Your Best UK Mortgage"



Bookmark This


Google Feeds


Yahoo Feeds


AOL Feeds


Newsgator Feeds
About Us
Your Privacy
Contact Us
Tip Our Charity
This website is Approved by Cradon Investments Ltd Authorised and Regulated by
the Financial Services Authority FSA No: 300505


TrustGuard

UK Interest Rates Forecasts and Predictions for Home and Property in the UK at 26th January 2007

UK Interest Rate: 5.25%

UK Interest Rates Forecast: Further rise likely before June '07

Interest Rates Could Reach Six Per Cent

There is a "pretty good chance" that the Bank of England will raise the base rate again next month, according to Roger Bootle, respected economist and economic advisor to accountancy firm Deloitte.

Such a rise would leave the base rate at 5.5 per cent, raising the cost of borrowing and of mortgage payments for Britain's homeowners.

Bootle said that he would expect a delay before rates rose beyond 5.5. per cent, but would not rule out further increases. "If economic data, including inflation data, continues to come in strong, I think rates will go up again, and indeed I don't rule out rates finishing up at six per cent", he commented.

Inflation at Highest Level for 11 Years

Inflation reached an eleven-year high of 3 per cent in December, according to new official figures, with the Retail Price Index measure of inflation, which includes mortgage interest payments, reaching 4.4 per cent.

Huge rises in oil and other energy prices are thought to be behind the rise in inflation, and despite wholesale oil and gas prices having dropped, these reductions have yet to be passed onto consumers, preventing inflation from subsiding.

These figures are likely to contribute to wage inflation over the coming months, and seem likely to lead to at least one further increase in interest rates.

James Knightley, an economist at the ING Bank, commented that, "…there remains the real risk that the Bank of England will hike interest rates again". Knightley said that he would expect such a rise to take place in the next two months, a sentiment echoed by other leading analysts.


Click here to go to the Home page and find out more information about UK Mortgages, UK Mortgage Quotes, UK Morgage Finance, Interest only mortgages (even with bad credit) or Home Insurance Policies Quote.



[improve this article]

Browse over 200 Free Mortgage Tips

Your Complete Guide to UK Mortgages

Find Out How to Win the Race to Buy Your Home - Home Buyers Guide

How to Sell Your Home

Learn How to Save ££s by Remortgaging

Read the Insider Info on Home Insurance

Best Buy UK Mortgage Tables

UK Mortgage Calculators

UK Mortgage Quotes

First Time Buyers

Self Employed Mortgages

Bad Credit Mortgages

Overseas Mortgages

Common Questions / FAQs

Mortgage Definitions

Mortgage Lenders UK List

LATEST MORTAGE UK NEWS

Site Help

About Us

Your Privacy

Contact Us

HELP

Mortgage Guide Site Map

Tip Our Charity