Something That Mortgage Borrowers Should Watch Out For – Rate Hold
Posted 2008-01-2
A broker claim’s that The Bank of England’s decision to hold the base rate this month could be bad news for Britain’s mortgage borrowers as this would mean an increase in the outgoings.
Had a 0.25 percent cut been implemented, homeowners would then have to pay around 105 pounds extra in interest, says John Charchol’s Ray Boulger
He further stated that many industry commentators expected a base rate cut this month and this would have been justifiable as well. Various negative economic statistics that were made known this month led many to believe that a rate slash was imminent.
Moreover he points out that inflationary pressures, more so npower’s decision to initiate a 17 percent raise would spell additional financial trouble for Britons. He states that the consumer price index inflation is barely above the central two percent target and the global economic lull it was more than likely to come down.
Mr. Bougler further stated that should the monetary policy committee further delay the next cut, bank rate would have to fall further than what would have been the case with an earlier cut.
As per moneysupermarket.com, this year there would be an increase in secured loans amongst homeowners.
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