Interest rates rise to 5.25%

The Bank of England (BoE) has announced an increase of 0.25% to its Base Rate this month. This is the 14th consecutive rise, and has pushed interest rates to 5.25%, which is the highest they’ve been for 15 years.

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The Bank keeps raising interest rates to tackle high levels of inflation. The Government sets the Bank a target of 2% inflation, and it was announced that the inflation rate had dropped by 0.8%, to 7.9%, in the month to June. This was a bigger reduction than the markets had predicted, after months of inflation remaining at a stubbornly high level.

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And we’ve seen mortgage rates begin to edge down marginally in the last week or so, in response to these better-than-expected inflation figures.

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If you wish to speak to a financial adviser about your current mortgage, give us a call today on 01782 970222.