Best Value Mortgages costs likely to increase

4th of March, 2011 Bookmark and Share
The Bank of England will set UK interest rates at its next meeting this coming Thursday and all eyes will be on the result to see if the historic rates of 0.5% will remain unchanged.

Last month saw greater pressures on the Monetary Policy Committee to increase rates following inflationary pressures throughout the economy. Any rate increases have a direct impact on the availability and price of credit in the economy including the cost of our best value mortgages.

Firstly, it was 1, then it went to 2 but is seems there was a more hawkish mood at the meeting last month with the latest minutes of the MPC revealing a four-way split. While the MPC left the quantitative-easing programme of directly injecting money into the economy at £200bn and the Bank Rate at 0.5 per cent at its February session, there was "a wider than usual range of views among committee members about the outlook for growth", which reflected a "highly uncertain" outlook.

The only good news appears to be for holidaymakers - the pound jumped on hopes that interest rates may rise before the expected rise in May. Recent events in the Middle East, which threaten another spike in the oil price have also strengthened sentiment towards a rate rise sooner rather than later.
Rob Killeen, Capital Fortune, Award Winning Mortgage Broker