Recently in the uk there have been 2 notable rises in mortgage rates which has resulted in thousands having their homes repossessed…what or who makes the rates rise???
The Bank of England fix the rate. Why do they put it up…for the same reason dogs lick their wedding tackle..because they can.
Why do mortgage interest rates go up?
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The Bank of England fix the rate. Why do they put it up…for the same reason dogs lick their wedding tackle..because they can.
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The bank of England decides the interest rates but why they rise and fall is also a mystery to me!
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Mortgage rates are linked to the Bank of England Base Lending Rate. This rate is raised or lowered depending on how the economy is doing. If prices and wages are going up too fast (thus affecting inflation) the BoE will raise rates in order to increase the cost of borrowing.
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Mortgage rates go up due to the Base rate set by the Bank of England. They change it based upon loads of reasons but mainly to try and curb domestic spending in order to try and keep inflation steady and reduce borrowing. Although I’m no expert I’m sure the most recent rise was due to all those dim wits who max out their credit cards over Christmas.
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The Bank orf England has increased intrest rates & mortgage rates follow these increases.
Its a way of top money people ripping every one off. You will find that interest rates will go down to suck people in then intrest rates rise.
Another term for this is ‘Rip Off Britain’
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The Bank of England sets interest rates by which all lenders then determine their own. Currently the Bank are raising interest rates to slow down the economy, by making the cost of borrowing more expensive. This discourages spending, a key driver to inflation. Currently inflation is well above treasury targets and this situation is bad because it means goods andservices cost more, therefore meaning in real terms many sections of society will, in real terms, become poorer year on year. By raising interest rates, this slows down the pace at which the price of goods and services increases (in general terms of course, there are always exceptions).
But remember, interest rate rises are also good for cash savers, which also inhibits spending as saving looks more attractive, thus again controlling inflation.
The sad cost of all of this, of course, are those who have stretched themselves to mortgage property and can now no longer maintain the interest payments.
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