It seems almost inevitable that Thursday’s meeting of the Bank of England committee will sanction a further quarter percent rise in the UK base rate. Recent comments by some members of the committee have led many to believe that a move upwards is almost certain, a view further strengthened by recent news confirming that property prices have risen again, and inflation is still fairly strong.
The last few years have seen a major loosening of the criteria for overdrafts, with many banks offering them as a matter of course. This has resulted in the majority of UK bank account holders taking up the offer of an overdraft, often over the choice of a short term loan - but which one is really best for you?
It has emerged that the debacle which is Home Information Packs (HIPs) may have had more of an impact upon the housing market than first thought. Data from the last two months has shown an unexplained rise in the number of homes for sale, against historic trends and totally unexpected. Did the HIPs situation play a part?
As we move into June and approach what many expect to be another rise in interest rates, the news from the high street seems to be indicating that recent rate hikes may finally be having some effect.
Even though the figures were effected by wet weather throughout the month of May, the fall of 1.8% compared with May 2006 is a welcome relief to the Bank of England. So have interest rates now peaked in the short term?
As the property market continues to prosper it seems as though a number of elements will soon be coming together to derail this run away train. While interest rate rises are starting to have an impact, and a rising rate of inflation has increased living expenses, there may just be a sting in the tail to tip many home owners over the edge!
While we are all aware that interest rates have been, and continue to, move upwards, it seems that this is offering the financial community a chance to recoup some of their losses from elsewhere. There are reports in the press that some Banks have been increasing savings rates in line with base rate changes, but increasing loan rates by more than base rate changes.
So is this really a big deal?
