Rates now due to rise in May

The Bank of England Governor Mervyn King has suggested that the Monetary Policy Commission are likely to raise bank base rate in May.

In his letter to the chancellor George Osborne, Mervyn King explains the high rate of inflation as three things:-

• The higher rate of VAT.
• The fall in sterling in 2007/08.
• Recent increases in commodity prices, mainly energy.

It is also believed that inflation will increase further from 4% currently to between 4-5% in the next few months, due to further increases in the world commodity prices. What this means is that the Bank of England base rate is expected to rise now in May and with further rate rises possible later in the year.

What does this mean to you?
If you have a mortgage, secured loan on a variable or tracker rate or even been benefiting from the lenders standard variable rate for some time, it is now the time to remortgage onto something more secure a fixed or capped rate.

If you need some remortgage advice, click the link and complete your details and we will contact you with your options.

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