BOE raise interest rates to 0.25%

Posted: 16/12/2021

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The Bank of England announced a 0.25% interest rate rise today despite fears that Omicron could slow the economy. So what will that mean in real terms for mortgages? For every £100,000 it equates to an extra £150 per year of interest to pay, or just £12.50 per month, unless of course you have a fixed rate mortgage. On its own it shouldn’t over-stretch most borrowers, however with inflation around 4% and energy prices rising much higher than that, it all will add to the financial pressure on many households. For landlords, after finance, the biggest expense is usually repairs and maintenance, and prices in that sector have jumped considerably, especially materials. However, rents have risen considerably in Northern Ireland of late and we don't expect to see any further significant rises in rent in the near future. At Key One Property we offer low, VAT-free property services for selling, letting and management. 

 

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