What a week!

Home » What a week! Published: 23rd September 2022 This Article was Written by: Adrian Anderson   bank of england , interest rates

This week has seen a number of dramatic economic announcements which will impact homeowners’ finances.

On Thursday, The Bank of England increased UK interest rates to 2.25%. This is a 50 basis points hike and takes borrowing costs to their highest levels since November 2008.

On Friday, The Chancellor announced a number of measures designed to put more money into the economy in the short term. This included a cut in stamp duty.

Collectively, the announcements present a confusing scenario where the government are trying to turbo-charge the economy with huge tax cuts, while the Bank of England are trying to put the brakes on with high interest rate rises. As a result of the Chancellor’s announcement, some are forecasting interest rates will now rise further and more quickly.

The Chancellor’s statement also does not solve the main issue for many of us, which is soaring interest rates and a cost-of-living crisis. If interest rates do continue to rise quickly, many borrowers will have far less disposable income and there will be many who may be unable to pay their mortgages.

Journalists have been reaching out to the Anderson Harris team for expert comment. Here is a collection from the past two days. We’ll also be posting more advice and considerations on our website in the coming week.

Adrian’s interview with BBC Radio London

• Property experts on the Stamp Duty cut: ‘Soaring mortgage costs will bring house prices back down to earth, irrespective of tax cut’, Country Life
• Industry Reacts to Bank of England Base Rate Hike, Property Notify
• Interest rates increase to a 14-year high, Zoopla
• Mortgage rush predicted as interest rates hit highest level since 2008, Estate Agent Today
• ‘The Bank of England’ has raised interest rates by 0.5 percentage points to 2.25 per cent – Expert reaction, IFA Magazine
• The best remortgage deals starting at 2.24% for September 2022, Ideal Home
• Mini-Budget: Chancellor Announces Stamp Duty Cuts & Threshold Changes, Property Notify
• What stamp duty cut will mean for house prices – Expert warning over ‘never-ending climb’, The Express

Can we help?

If you would like to discuss your property finance arrangements given this week’s dramatic announcements, please contact our team of specialists on tel 020 7495 6633 or email enquiries@andersonharris.co.uk.