One of Shropshire’s leading finance companies today reassured homeowners and prospective buyers over the latest rise in interest rates.
Q Financial Services, which has its offices in Wellington and Shrewsbury, said the increase in rates to 0.5 per cent should not trigger unnecessary alarm amongst mortgage holders.
The Bank of England today increased rates for the second time in three months in an attempt to curb a rapid rise in the cost of living.
However Q director Mitch Gough says rates still remain at a historic low and the cost of borrowing was likely to remain low for the foreseeable future.
“We warned three months ago when the Bank first increased rates that another rise was likely, and we are not surprised that it has come at the present time. Inflation continues to rise and the cost of living continues to be a dominant factor in the economy.
“But homeowners and first-time buyers will continue to be able to access mortgages at what are historically very low rates, and we do not see that changing significantly in the long term.
“As ever, it pays to get professional advice and shop around so that you can find the mortgage deal which best fits your circumstances and long-term planning.”
Inflation, as measured by the consumer prices index (CPI), is expected to peak at 7.25% in April – significantly above the Bank of England’s own target of two per cent.
Mitch added: “Inflation is expected to average around six per cent across the year so we expect the Bank of England to remain under continued pressure with regard to rates.
“We would advise all families to keep their budgets under review and to seek professional advice should they require any help in restructuring their own commitments.”