James Falla notifies base rate rises

11/05/2007

Today the Bank of England Monetary Policy Committee confirmed the increase on the standard Bank Rate paid on commercial bank minimums by 0.25 percentage score to 5.50 per cent.

Looking at the appreciation, James Falla at www.thomascharles.com added his say; Examining at a £150,000 interest only mortgage, it simply means an extra monthly total of around £31. Looking at this from a different perception, it is quite a bit. However, this is the fourth increase since August 06, meaning an increase in just 9 months of around £125/mth. Overall, a rise in the cost of mortgage borrowing of over 20% since June 2006.

Mr Falla added, “At Thomas Charles we are seeing more and more homeowners struggling with debt repayments. Incomes have not risen by 20% during the last year and so people are meeting the growing cost of their mortgage in other ways - all too often through the increased use of credit cards and loans. With people taking ever larger mortgages to get onto the property ladder, we expect this trend to continue and inevitably end in debt problems and insolvency for some people."

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