Interest Rates Reduced to 5%
The Bank of England have voted to drop the UK's base interest rate to 5%, dropping it by a quarter of a percent. One reason for this was because inflation had risen to 2.5%. This is the 3rd time it has been cut since December 2007.
The Bank of England always aims to keep inflation at 2%, or as close to it as possible. This increase reflects the impact of higher energy, fuel and food prices, along with a depreciation of the sterling on our import costs.
We are also seeing a fall in the value of the Pound against the Euro, which sees holidaymakers getting less Euro for their money.
The ongoing housing crisis must have had an impact too, as mortgage lending hits an all time low - the lowest in 16 years. Whilst some lucky homeowners with mortgages will get to benefit from a cut in their mortgage rates, some lenders have announced they won't be dropping mortgage rates in conjunction with the news - some are even raising their current rates.
The Bank of England will reconvene next month, 8th May, to decide what will happen next.
Related Articles
There are so many financial companies wanting to lend you money, it is hard to know who to choose. With all the competition available it is easy to get confused and be mislead. Many high street banks and building societies can be un-competitive with their prices, even if you are a loyal customer of theirs. Most lenders do not work on loyalty so don't feel obliged to go with your usual bank.
Read on...
The world of finance has a host of different products and offers out there to entice the general public to want them. Some are very good value, some are very useful but there are always a few bad grapes in the bunch. So here is a short guide on the bad deals in finance - the ones to avoid.
Read on...
If you are in a relationship or married, you are eligible to apply for a joint loan together. Joint loans are one way to raise finance for any purpose you require. You can apply for a loan on your own, however you are more likely to be eligible to borrow a larger amount of money if it is a joint application. This is because the lender will determine how much money to offer you according to your income. If the income is a joint one, it'll be larger than a single salary.
Read on...
Having a small amount of debt is generally not a problem for many people. It can help us out in those unexpected times of need, emergency situations such as vehicle and home repairs or even just to be able to treat ourselves now and again. The troubles come when people start increasing their debt by applying for store cards, more credit cards and even just paying the minimum amount each month can cause problems.
Read on...
The christmas holiday period seems to get longer and longer and the increased cost of presents, wrapping, parties and food bills just grows each year. The latest christmas toys for kids are now averaging at about £40 each, and the pressure to get bigger and better toys than everyone else can create a lot of pressure on you. It's no wonder that Christmas can be one of the most stressful times of the year. There is enough to think about without worrying about how you are going to finance your way through the holiday season.
Read on...
Related News Items
The heads that be at the Bank of England have decided to keep the current base interest rate as it as, so it remains unchanged at 5.5% for the next month at least, if not longer.
Read on...
There were huge sighs of relief all over the UK this morning as the Bank of England announced that they were cutting the base interest rate back down to 5.5%. This was after the base rate was raised to 5.75% earlier this year, the highest it has been in 6 years.
Read on...
Abbey Loans' latest survey reveals that our obsession with looks and plastic surgery is growing each year and many people are opting to take out personal loans to fund the operations. Just shy of 1 million Brits want to borrow money in order to pay for cosmetic surgery - the total amount comes close to £1.5 billion.
Read on...
Our housing market is still showing an ever downward spiral as official statistics showed that the number of mortgage applications that were approved in December 2007 was lower than November, and October. In fact that's a fall for the 7th month in a row.
Read on...
