Interest rate rise on the cards as mortgage activity increases
A recent speech given by Mark Carney hinted at a rise in the nation interest rate as soon as next year.
This comes explicitly despite the news of economic meltdown in China with Mr. Carney claiming that recent events in now way required a change in strategy from the Bank of England. Several analysts however remain somewhat more skeptical, predicting that the activity in China will delay a rate rise over here in the UK.
The news of an impending interest rate rise (thought to hit by around May 2016) has caused many homeowners to lock themselves into new mortgage plans in preparation. Indeed remortgaging rates for July this year were the highest theyíve been since 2008.
Mortgage approvals also went up for new home purchases to their highest level for over a year.
This increased activity from UK homeowners looking to remortgage in preparation for rising rates is echoed in the increased competition among mortgage lenders who are all fighting to be the one to benefit from this surge in custom.
Chief economist at IHS Global Insight, Howard Archer, claimed that the latest reports from the Bank of England served as evidence of solid improvement and firming up in the housing market. He said that ì it is possible that Julyís performance may have been lifted by some house buyers looking to move quickly to try and lock in a low mortgage interest rate before they start risingî.
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