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The predictions on commercial mortgages rate increase February term

09/01/2007

A vast majority of experts feel that the interest rates will rise in February, this can make things a bit more complex for Commercial Mortgages.

Commentators feel that the Bank of England is in a steady pattern to increase the base rate from a stunning five per cent reaching to 5.25 per cent, however the borrowing totals will stay the same and here there will be no increase or decrease.

For new potential business investors getting into a Commercial Mortgage today will be a little more cost effective, this is expected in the mortgage revenue.

Philip Shaw at Investec told Reuters "There is clearly a risk that rates will rise again next month."

"However, we do not feel that there is a great sense of urgency on the [monetary policy committee] and there is unlikely to be sufficient evidence on wage settlements one way or the other by February''s meeting."

Due to the increasing on wages they feel that this is a main line of general interest rate increasing, other data shows that pay rises are at a standard of four per cent, on going and growing.