by government, who s advertised help to buy as an affordable scheme, right, when things become unaffordable, you can t simply turn around and say, that s your problem. a rise of 0.25 percentage points would take the bank of england s base rate to 5.25%, the highest since april 2008. for someone with an average tracker mortgage of £200,000, that would mean a rise of more than £23 a month. and for around 800,000 homeowners due to renegotiate their fixed deal in the second half of this year, it could mean an even bigger increase in their monthly repayments. whites, good afternoon. but at this estate agent in salisbury they say there are still more people wanting houses than there are properties available. a supply and demand issue that tony believes will prevent house prices
by government who has advertised help to buy as an affordable scheme, right, when things become unaffordable, you can t simply turn around and say, that s your problem. today s rise of 0.25% takes the bank of england s base rate to 5.25%. the effect of that on its own looks modest, less than £24 a month. but because that has now happened 14 times in a row, 800,000 borrowers coming off fixed rate deals in the second half of this year face startling jumps in their payments. in salisbury, like elsewhere, higher interest rates and tax changes have put landlords off buying more buy to let properties. the supply of rented property is not keeping up with demand for it from young renters, forcing up rents, so young people are still trying to buy. you wouldn t think first time buyers were on the scene, and they are, and i think that is due to the high rents. rents are climbing very, very quickly and first time buyers are saying, shall we take a mortgage or shall we spend the rent and lose the
the cost of borrowing in a widely predicted move by 0.25%. bringing the main base interest rate up to 5.25%. it s designed to tackle inflation which has started to ease but consumer prices are still rising at almost 8% a year. that s still four times the bank s target. the idea is that by raising the cost of borrowing makes people poorer, less likely to go out and spend, and that eases demand, meaning in theory that prices fall. but it s a tricky balancing act to perform reining in inflation without hurting the economy too much. let s talk to jackie bowie head of europe at chatham financial. good to have you with us. no great surprise that rates are continuing to go up, even though, as we said, inflation is starting to ease. that is sort of the problem. the two are
thank you very much. i am making no comments about the pun in the last headline, if you missed it, she said this is a kind of magic. we start in the uk where as we ve been hearing the country s central bank has made its latest move to tame rising prices. once again, it s hiked the cost of borrowing in a widely predicted move by 0.25%. bringing the main base interest rate up to 5.25%. it s designed to tackle inflation which has started to ease but consumer prices are still rising at almost 8% a year. that s still four times the bank s target. the idea is that by raising the cost of borrowing it makes people poorer, less likely to go out and spend, and that eases demand, meaning in theory that prices fall. but it s a tricky balancing act to perform reining in inflation without hurting
in a widely predicted move by 0.25%. bringing the main base interest rate up to 5.25%. it s designed to tackle inflation which has started to ease but consumer prices are still rising at almost 8% a year. that s still four times the bank s target. the idea is that by raising the cost of borrowing makes people poorer, less likely to go out and spend, and that eases demand, meaning in theory that prices fall. but it s a tricky balancing act to perform reining in inflation without hurting the economy too much. let s talk to jackie bowie head of europe at chatham financial. good to have you with us. no great surprise that rates are continuing to go up, even though, as we said, inflation is starting to ease. that is sort of the problem. the two are