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Interest rates stay on hold

The Bank of England chose to hold the cost of borrowing at a rate of 5.75%

Uk borrowers will breath a sigh of relief at the Bank of England’s Monitory Policy committee’s decision not to raise the rate to 6%

The governments key target of 2% inflation is still not being met (currently running at 2.4%).  The inflation figures due to be released next week which will give a good indication of if we can expect a rise next month or not.

Mortgage Broker .co.uk has seen the numbers of first time buyers struggling to get on the property ladder increase since August 06 in which time we have seen a 1.25% rise in interest rates. The rate rise over the last year has been equivalent to a £156.25 worth of additional interest payments per month on a £150,000 mortgage.

03 August 07

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