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Here at Lock & Key, we are always on the look out for stats and updates to help inform our clients about the last news, views and stats in the property industry. Here are some interesting takeaway points from the recent rise in Interest Rates.
- 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
If you would like to discuss this in more, feel free to reach out to us by calling the team on 01225 707 342 or sending us an email here.
Source: Dataloft Inform