Mis-sold Mortgage Claims > Mortgage News
Consumers worry over future mortgage rate rises as Bank of England holds rates
Thu, 10 Mar 2011
The meeting of the Bank of England’s Monetary Policy Committee (MPC) has kept the bank base rate (BBR) on hold at 0.5%. This means that rates have been at 0.5 per cent since March 2009. Consumers are still worried over forecasts of future rate increases as inflation remains out of control.

The Minutes from the February MPC meeting show three members voted for increases of up to 0.5 per cent. Spencer Dale and Martin Weale voted for a rise of 0.25%, while Andrew Sentance wanted an increase of 0.5%.

Industry experts have been forecasting a rate rise for several months, but opinions vary on the timing and size of a rise. Some say that a rise in May is inevitable as inflation is expected to remain high and the next quarterly report on inflation is due at that time.

Any rate rise is expected to prompt an increase in some lender’s standard variable rate (SVR) which the majority of borrowers are now "stuck on" with an inability to remortgage, due to increasingly tight lending criteria and a general apathy towards lending. Borrowers are braced for a payment shock, in particular those who are coming to the end of low, fixed or tracker rates.
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