Bank of England doubles interest rate to 0.5 per cent in blow to homeowners with variable mortgage loans

The monthly payment for a?300,000. mortgage will rise by?34, from?1,284 -?1,582, while the monthly payment for larger?500,000 loans will rise by?68, from?2,568 -?2,636. The monthly payment for a ‘300,000 mortgage will rise by?41, from??1,541 to?1,582. For larger loans, borrowers will pay?68, from???2,568 to?2,636.
London rent prices hit a record high due to a ‘dramatic’ new cost-of-living squeeze for tenants
London house prices: Property prices at an all-time high, as the cost of living rises
London 2022: The impact of inflation, Covid and partygate on the purchase of a house
Heather Owen, financial planning expert at City wealth management Quilter, said that while the Bank of England’s interest rate may be lower than in years past, any increase will still have a significant impact. The rising cost of living and the confirmed April increase in National Insurance will make the pressures even more acute. The previous rate hike seemed to have not affected the property market. However, prices are rising faster than ever. A further increase in mortgage rates and more expensive mortgages could slow the seemingly unending rise in house prices. This should be welcomed by those who are waiting to purchase a home at the right price. “Cory Askew from Chestertons is the head of sales. He said that the 0.25 percent increase in interest rates will not have a significant impact on buyer behavior. This is especially because mortgage lenders have already begun to include the base rate change in future calculations. The property market in London continues to see record numbers of house hunters looking for a place to call home. Our branches have seen a remarkable 63% increase in buyer inquiries compared to January last year. “Henry Knight is the managing director of Springtide Capital, a mortgage broker. He said that the Bank of England has already raised the interest rate twice in a short time. It remains to be seen if another increase will occur later in the year. “Some economists predict that the interest rate will rise to 1.25 percent by next year. This would be a significant increase in buyers’ purchasing power, as compared to the current rate at 0.5 percent. We don’t believe the latest increase will have any significant impact on the market until then, as most homeowners are on fixed long-term mortgage rates.