Mortgage Interest Rates Tipped to Rise

The Bank of England is today expected to increase interest rates as they fight to reduce the UK inflation.

Economists are predicting the Bank of England to increase the rate of borrowing today from 5.50% to 5.75%. Although rates were kept at 5.5% at last month's meeting, four out of the nine MPC members voted for a rise. House prices rose 0.4% in June, and inflation still remains above the government's target of 2%

Halifax revealed on Wednesday that UK house prices rose 0.4% in June, Land Registry figures showed that the price of flats, as opposed to houses, in most parts of the England and Wales were now falling slightly.

Interest rates have risen four times since last August and if you are worried about keeping up to date with your mortgage repayments should consider speaking with a mortgage broker as re-mortgaging to a better rate could help protecting you from the mortgage interest rate rise.