Leading local estate agent Mullucks Wells has reacted to the news that the Bank of England has raised interest rates for the first time in ten years.
On Thursday (2/11), the official bank rate was lifted from 0.25% to 0.5% - the first increase since July 2007.
Commenting on the rise, Mullucks Wells Residential Director William Wells said: “The most surprising aspect of all this is that interest rates went down to 0.25% in the first place. Considering that the 30-year average is 4.5%, rates are still at incredibly low levels. In fact today’s hike merely reverses the cut made in August of last year, in the wake of the vote to leave the European Union.
“So interest rates have not gone up because of a surging economy, but following the devaluation of Sterling following Brexit. The reality is that the market had been expecting this move and had already factored it in.
“Almost two million mortgage holders have not experienced an interest rate rise since taking out a mortgage – and even now many mortgages, loans and credit cards are unlikely to see an immediate impact. There are still plenty of very good long-term fixed rates around, and my expectation is that interest rates will remain low for quite some time to come.”