Interest Rates Rise

The Bank of England has raised interest rates again. The base rate of interest has risen by a further 0.25%, to 0.75%. This means that the rate is now back at the level it was before the reduction due to the pandemic. Mortgage lenders have been increasing the interest rates on the mortgage deals they are offering for a few weeks now, so this may not have an immediate impact on the mortgage market.

It is, however, a sign that the Bank of England is keen to get inflation back down, as it is still running way above the level they target it to be. Of course, we will all know that one of the main reasons for the current rate of inflation is the cost of gas, electricity and fuel, so we don’t see increasing rates having much effect on those. It will, of course, make people reconsider any discretionary spending they undertake, which is how a rate rise aims to combat inflation.

We can only wait and see if it has the desired impact. If you have any concerns, our team is always on hand to talk you through any ways in which we can help. Please email: office@barlow-irvin.co.uk or call: 01204 304 814.