Jackson-Stops comments on rise in interest rates to 4.25%

Nick Leeming, Chairman of Jackson-Stops, comments on the Bank of England’s rise in interest rates by 0.25 percentage points to 4.25%.

“Hot off the heels from a surprise rise in inflation for February, the latest decisive action in a marathon of measures by the Bank of England to bring inflation down by the end of the year should have the long-term effect of calming the markets.

“This could, however, be a fly in the ointment for housing, as mortgage borrowers watch intently to understand the effect this may have on current deals.

“In the medium term, as with an ever-evolving economic picture, if inflation is successfully scaled back, the overall lending market may paint a more favourable picture for borrowers with further stability on the horizon.

“Home ownership continues to sit at the top of the table for savers looking to beat inflation and make their money work harder for them. No cash savings rates currently available can beat inflation.

“By comparison from January 2022 to January 2023, the average UK house price rose by £17,000, showing just how reliable longer term capital growth in our bricks and mortar can be.

“Even with the average monthly mortgage payment being £733, homeowners could have made an average profit of £8,156.”

Kindly shared by Jackson-Stops

Main photo courtesy of Pixabay