…By Henry George for TDPel Media.
Data released recently reveals that mortgage rates have already surged to 6.19 percent.
Hickmore, speaking on BBC Radio 4’s Today program, explains that while predicting the exact correlation between the Bank’s interest rates and two-year fixed mortgage rates is challenging, it could imply rates in the high six percent range, possibly even touching seven percent.
Buy-to-let rates also experienced increases, with the average two-year rate at 6.49 percent and the average five-year buy-to-let deal at 6.33 percent.
Financial markets anticipate a rise of 0.25 percentage points to 4.75 percent, but there is a 40 percent chance of a larger increase of 0.5 percentage points to five percent.
The Bank of England aims to address these indicators of inflation as it sets interest rates.
If realized, this would mark the highest level in over two decades.