The Bank of England (BoE) has increased the base rate by 50 basis points to 5% — its 13th consecutive rise.
This is the biggest rise since February, and follows two monthly increases of just 25 basis points. The BoE’s Monetary Policy Committee voted 7-2 for this increase, with the remaining two voting to keep rates on hold.
This bolder move by the Bank of England is an attempt to dampen inflation, with the consumer price index stuck at 8.7% — significantly higher than its 2 per cent target. Figures published this week also show that core inflation, which strips out volatile food and energy prices, is continuing to rise, and is now at its highest level for 30 years.
In its report the BoE said that previously it had forecast the base rate to average at 4% over the next three years. This has now been revised, due to rising gilt yields, that now suggests “a path for the Bank Rate that averages around 5.5%.” Read more from Mortgage Strategy >
On a positive note…. we just had to share the following podcast: Skipton Talks with Mortgage Strategy about their Track Record Mortgage – no deposit needed!
In this podcast, Kimberley Dondo from Mortgage Strategy is joined by Charlotte Harrison, CEO of Home Financing at Skipton Building Society, and Andrew Montlake, MD at Coreco, to discuss the new, no-deposit, Track Record Mortgage.