📢 Mortgage News Now: Bank of England Raises Rates, Economy Faces New Challenges 📈
In a significant development, the Bank of England has raised rates to 5%, a level not seen since the global financial crisis of 2008. However, today's economic landscape is vastly different, particularly in the mortgage market.
The Bank acknowledges that the full impact of the rate rise may take time to be felt due to the prevalence of fixed-rate mortgages. This poses the risk of rates having to rise even higher, with the burden falling disproportionately on 1 -2 million young homeowners, as highlighted by the Institute for Fiscal Studies.
While the Bank expects inflation to decrease in the coming months due to energy and food price changes, this rate hike adds further strain to the economy. It is a deliberate move aimed at addressing economic challenges. If the data continues to disappoint, further rate hikes are anticipated, starting as early as August.
Stay informed as we closely monitor the evolving mortgage landscape and its impact on homeowners and the economy.
For personalised advice and assistance, contact Mortgage321 today and let our experts guide you through the changing mortgage landscape. Call us now for a tailored solution to your mortgage needs.