Rate increase put on hold! But for how long?
In what can only be described as a blessing for UK homeowners, a suspected imminent rise in the national rate of interest has been put on hold.
However, analysts have warned homeowners not to sit to comfortably just yet, as it is suspected that rate hike number 5 could be just around the corner. So far this year, interest rates have increased no fewer than 4 times, causing the average home loan repayment to rise by approximately £90. Analysts fear that many homeowners are already at their absolute limit and a further rise could have disastrous consequences.
It has been suggested on numerous occasions that the recent spate of rises is having a noticeable “cooling” effect on housing market growth. The Halifax reported that May was one of the slowest months ever for property growth; identifying a meagre ½ percent increase.
A respected economist has confirmed that the Bank of England’s decision to freeze any further interest rises is only temporary, and it is likely we will see a further rise of around ¼ of a per cent, possibly as soon as July.
