Interest rate warning from Mark Carney
The Governor of the Bank of England Mark Carney has put out a warning that interest rates may rise soon, saying that they could rise within the next couple of months.
Interest rates have remained at a record low of 0.5% since March 2009. Has the period of ultra low mortgages come to an end? Mark Carney said households should now get ready for rates to rise at ‘around the turn of this year’ – that would open up the possibility of a rate rise before Christmas or in the New Year.
A rise in Bank Rate from 0.5 per cent to 0.75 per cent would add £18 a month or £216 a year to a typical £150,000 lifetime tracker mortgage.
This could mean hardship for households already struggling to pay their bills, however any decision on a possible rise in interest rates will be taken according to the economic factors prevailing at the time, it is not that simple, the Pound is riding high against the Euro at present and a hike in interest rates could see it strenghten further, not exactly ideal for exporters to the Eurozone.