Homes Blow As Interest Rates Hit Six-Year High

The ScotsmanMay 11, 2007

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Summary


HOMEOWNERS suffered a blow yesterday as interest rates rose to their highest level for six years - and there were warnings of a further increase this summer.

The hike from 5.25 to 5.5 per cent had been widely anticipated as the Bank of England struggles to rein in inflation and cool consumer spending.

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Homes Blow As Interest Rates Hit Six-Year High

However, it will hit millions of mortgage holders hard, with monthly payments on an average mortgage of GBP 100,000 now GBP 60 higher than a year ago.

A decision on whether to rais...

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