Published: 17 March 2022
Location: Kent, UK
So as anticipated, rates move with at least three more hikes on the way. The good news is many of us are locked in, and the housing shortage continues - that said, it's always worth taking stock!
Today, Thursday 17th March 2022, the Bank of England has announced that interest rates will rise to 0.75%, adding additional pressure to households across the UK who are already seeing steep increases in the cost of living due to the highest rates of inflation in the country has seen in 30 years.
The Bank Of England Today 17th March 2022 Has Raised Interest Rates To Deal With Inflationary Matters.
The announcement from the Bank of England comes as no surprise as they follow the footsteps of The Federal Reserve in the US and have raised interest rates for the first time since 2018. However, this is the third consecutive rise the UK has seen in interest rates in recent months.
But what does this mean for homeowners?
Those with a fixed-rate mortgage.
For homeowners with a fixed-rate mortgage, there will be no immediate changes to the cost of living or the amount their mortgage will be. However, homeowners approaching a mortgage renewal or those coming to the end of their fixed-term will need to plan for a higher rate of interest and, ultimately, a higher monthly payment.
Those with a variable rate mortgage.
For homeowners with a variable rate mortgage, the rise in interest rates means that they will be facing a rise in their interest rate and, therefore, an increase in the amount they pay monthly for their mortgage with immediate effect.
What does this mean for tenants?
Tenants, alongside homeowners, have seen a surge in the cost of living, from gas prices to petrol; however, tenants have also seen a record rise in rents. The average rental price for a two-bedroom property in the South East is £1,128 per month, according to the HomeLet Rental Index. Across all nine of Anthony Martin branches the average monthly rent for a property is £1,208.12.
With interest rates increasing again, tenants will likely face this brunt as Landlords raise rental values to help cover mortgage rate increases.
Anthony Martin, CEO of the business that bears his name explains, “Interest rates will continue to rise until the Chancellor gets a handle on inflation, our position is to remain prepared for rates getting to circa 3% which is still “normal” and hope that the Ukraine crisis and other matters get resolved, salary growth should help cater for these changes”.
About Anthony Martin Estate Agents
In 2011, Anthony Martin Estate Agents was an award-winning sales and lettings agency with offices in Bexley, Bexleyheath, Barnehurst, Locksbottom, Meopham, Swanscombe, Dartford, Sutton at Hone and New Ash Green. Serving the community of Kent with their sales, lettings and property management requirements, Anthony Martin has an enviable reputation for delivering a high-end service focused on their customers and clients.
Source: Anthony Martin Estate Agents
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