|
23 July 2007
Homeowners in the UK, and those with variable rate loans and finance, have had to bear the brunt of five interest rate rises over the past year, each for 0.25 percent.
The series of interest rate rises has seen the base rate in the UK rocket from 4.5 percent in August of last year to 5.75 percent by July of this year.
Many households and individuals have seen their mortgage and variable loan repayments steadily rise, and there are concerns that many households could be tipped over the edge financially as a result of the interest rate rises.
According to many analysts the UK has not yet seen the last of the interest rate rises for this year either, so there could be more trouble in store for those already struggling to keep up with their repayments.
The interest rate in the UK is already at its highest in six years, and according to some industry professionals there is set to be another interest rate rise in September of this year.
Analysts have drawn their conclusions following the release of minutes from July's Monetary Policy Committee meeting, which indicated that the latest interest rate rise was decided by a vote of 6-3.
One banking official stated: "CPI figures suggested core inflation pressures continue to build while energy and food prices remain under upward pressure from wholesale market developments and adverse weather. We therefore look for a further rate move in September, taking rates to six per cent."
Those that have benefited from interest rate rises so far – other than banks and lenders – are savers, many of whom have seen the interest paid on their savings shoot up. Some banks have passed on the full interest rate rises to savers.
However, others have failed to pass on all of the interest rate rises to savers, which has resulted in a number of banks being slated by authorities and campaign groups.
 Credit card guide
Credit card news archive
| 
