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Roman Bank, Holbeach Bank, Holbeach, Spalding

£249,999

Property of the week

Interest Rates... Where are they going?

20th May 2010

Bank of England Base Rate remains at its historic low of 0.5% following this months meeting of the Monetary Policy Committee who also left the Bank's 200 billion easing programme on hold. With the recent UK economic data indicating that the economy is continuing to recover from its longest and deepest post-War recession, both decisions were widely expected The likely timing and pace of monetary policy tightening have been pushed back in recent months but the prevailing view in the markets is that the Bank of England Base Rate is unlikely to rise before November.

Historically, the Bank of England Base Rate has averaged around 5% but has remained at 0.5% since the last quarter of 2009. Those consumers with tracker mortgages will have seen their mortgage payments decrease substantially but need to be aware that history tends to repeat itself and higher payments are likely. The cost of fixed rate mortgages has decreased in the last 2 months being the lowest for the last year - is now the time to fix?

Ben Hanwell Cert FPC
Pygott & Crone
Director of Financial Services