No move on UK interest rate

Last week the Bank of England announced the decision to keep the base rate at 0.5 per cent for the 38th month in a row but lenders are beginning to raise the interest rates on UK mortgages.

Despite the record low base rate remaining in place the Halifax, one of the UK’s largest mortgage providers, have recently introduced a 0.3 per cent hike to its mortgage rate – this equates to a monthly increase of £27 on a £150,000 home loan.

Several other home loan providers have also lifted rates for UK property owners and experts believe more lenders will follow suit in the coming weeks due to the on-going financial and political crisis in several countries including Greece, France and Spain.

In their efforts to protect profit margins UK banks and building societies are chipping away at the rates offered on savings account as well as lifting their mortgage rates.

Other reports reveal a drop in the amount of UK mortgages issued during last month and experts believe the mortgage market will remain tight for the foreseeable future.