Base Rate Rise

3rd November 2017  |  12:00am

Base Rate Rise

As anticipated the Bank of England increased the base rate from 0.25 per cent to 0.5 per cent yesterday for the first time since July 2007. 

 

Andrew Farrant, Senior Partner at White and Sons, says “I believe this will have limited direct impact on the property market and is unlikely to affect house prices in general.  There may be an indirect benefit by injecting some realism in to the property market. A gentle reminder that rates can rise will caution buyers, weeding out the less committed. In addition there is also a lot of over-priced property being advertised and it is absolutely essential that vendors seek expert advice from a professional agent if they are serious about selling.  What the rate increase may well do is to install a dose of sensibility and realism, which is vital right now!” 

 

In real terms this increase isn’t likely to impact borrows substantially, Robert Gardner, chief economist at the Nationwide comments, “on the average mortgage, an increase of 0.25 per cent would increase monthly payments by £15”.