Money

UK inflation jumps to 30-year high of 5.4% as cost of living crisis deepens – business live


There is further speculation that the Bank of England will raise interest rates by 0.5% at its February meeting in order to counter rising inflation, and it remains to be seen what impact this will have on buyer confidence.

Despite the global pandemic, the housing market was able to thrive last year and there are still those who have not yet made their purchase. Squeezed affordability would be an issue, preventing first-time buyers in particular from getting on the ladder, but the Bank will be mindful that as we come out of a pandemic, a succession of significant rate increases could be extremely damaging to the wider economy.

Low mortgage rates have been one of the contributing factors to the housing boom and although some lenders are tweaking mortgage rates upwards on the back of higher money market rates, pricing remains competitive.



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