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Hamptons reviewing mad increases on interest rates

10/05/2007

From market research carried out by Hamptons International Mortgages they have found that the interest rate has increased to 5.5 per cent and this will keep on rising. They feel it is going to make it impossible for first-time buyers to carry out a mortgage deal.

Director at Hamptons International Mortgages, Jonathan Cornell commented: “The decision to raise the base rate this month will take few people by surprise.

"With inflation last month reaching the highest it has been for 10 years and the retail price index hitting 4.8% some big banks are even predicting the possibility of the base rate reaching 6% by early this autumn.

“The Monetary Policy Committee were left little option but to raise the base rate this month, however, I have my doubts as to whether this quarter point rise will dampen house price demand as this will undoubtedly continue to outstrip supply across large parts of the country.

“With fixed rate deals being pulled by lenders left, right and centre and the distinct possibility that this raise may not be the last, many borrowers who have not acted before today will really start to feel the heat of this rise.”


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