Blog Post

Interest rate rise

TomS - Head Tom Simper May 10, 2022, 13:00 PM
257_Dataloft_inform_Insight

UK interest rates were raised for the fourth time since December (on 5th May 2022), by a quarter of a percentage point to 1%. This is the fastest increase in borrowing costs in 25 years.

Inflation is running at 7%, which is more than three times its target and is still rising. This is due to the post pandemic-surge in consumer demand and has been exacerbated by the Russian invasion of Ukraine.

The consensus among a poll of economists by Reuters is that the base rate will rise to 1.5% by early 2023, but will remain there for the rest of that year. This remains low by historic standards.

Many borrowers will be cushioned from any immediate impact by fixed-rate deals. The proportion of advances on such deals has risen each quarter since the market reopened in June 2020 (94.5% Q4 2021, FCA). Source: Dataloft, Bank of England

Load more comments
Thank you for the comment! Your comment must be approved first
comment-avatar

"As a tenant, this might be the best agency I've worked with so far."

- Jeddy

"I would like to thank Abbey for all her help and support she offered"

- Marie

"I deeply appreciate Peter Anthony Estate, especially Abbey, who works here."

- Delar

"If you need an Estate Agent who is going to really go the extra mile, Dewi is THAT person."

- James

"Friendly and helpful. No problems everything ran smoothly as expected and professionally."

- David

"Dewi kept us up to date & was very understanding of my Mum's situation. I would highly recommend selling with this company."

- Jane

"Sean was really lovely on our inspection. Quick, easy and efficient. Thank you!"

- Roberta

"Very good estate agency"

- Junaid