Property News · January 25, 2014

When interest rates do rise the 'new normal' could be 3%, not 5%


It will be incremental when the rate rises do come, but the Bank of England wants a sustained recovery firstThose of us who write about economics for a living know the signs. A work colleague sidles over, ostensibly for a gossip, but really to ask one question. “Is this the right time to take out a fixed-rate mortgage?”To be fair, it is not a query that has surfaced much for the past five years. The Bank of England cut its official lending rate to 0.5% in March 2009 and it has remained at that level – the lowest since the Old Lady first opened its doors in 1694 – ever since. Borrowing costs have remained low because the economy has struggled to recover from the worst recession in modern history. Only a financial masochist, desperate to throw money away, would have considered taking out a fixed-rate mortgage. Continue reading…

Source : theguardian.com
Read more…When interest rates do rise the ‘new normal’ could be 3%, not 5%

You may also like...