11 Aug

Interest rate rise talk continues

Interest rate rise talk continues

The ongoing talk over a potential rise in the base rate of interest has continued within the property industry.

Mark Carney, the Bank of England's governor, has refused to confirm when a rise may happen and stressed a number of factors will be taken into account, including the ongoing situation in Greece and the performance of the euro.

However, the recent increases in wage growth and imports means there is growing pressure for the central bank to rise the interest rate.

Therefore, anyone looking to remortgage or buy a property is being advised to account for future rises in the cost of borrowing, with many lenders already revising their products to reflect a possible rise in rates.

Nicholas Leeming, chairman of agents Jackson-Stops & Staff, said: "Mark Carney has been careful to flag that interest rates will edge higher in the longer term as the economy continues to grow and inflationary pressure on wages increase.

"Property buyers should recognise that rates will move towards more sustainable, long term levels and so budget for higher mortgage costs accordingly. Vendors should be aware that any such increases will create resistance to overly high guide prices," he added.

Interest rates have been held at 0.5 per cent since March 2009.ADNFCR-1222-ID-801797166-ADNFCR

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