Future base rate rise "distinct possibility" says National Homebuyers

The Bank of England may not increase the base rate in September but a rise in the future looks likely.

[UKPRwire, Thu Sep 27 2007] Global Insight has provided its opinion on the upcoming rate decision which is due to be announced by the Monetary Policy Committee (MPC) on September 6th.

Currently, rates sit at a six-year high of 5.75 per cent following five rate rises in 12 months.

Fears of another rise have been fuelled by the Bank's latest inflation report and figures which show that, despite the recent rises, borrowing actually increased in July.

"There is still a distinct possibility that interest rates could eventually reach six per cent," said Global Insight's chief UK economist Howard Archer.

"The Bank of England remains firmly focused on the medium-term inflation outlook and significant upside risks to this continue to stem from potential capacity constraints, firms' still relatively high confidence in their pricing power and elevated oil prices."

Homeowners are set to be given a reprieve this month but may want to make a quick property sale ahead of any future rises.

Julian King, director of fast property purchase firm National Homebuyers says, "The idea of a further rate rise will cause commotion.

"Those exiting their comfortable fixed-rate agreement will be severely hit. With the possibility of a further rise, this will cause more damage as affordability becomes a serious concern.

"Our panel of City analysts are confident that another rise is likely this year".

National Homebuyers is the UK's leading fast property purchase firm, guaranteeing a quick sale on any property surveyed for homeowners who need a quick sale of their home for whatever reason. The company also arranges an equity release solution, "Sell and Rent Back", this allows the homeowner to sell their property for cash and remain living there as a tenant for as long as neccessary.

Bookmark this release: Del.icio.us - Digg - Furl - Blinklist - Reddit