Monday, June 16, 2008
The Bank of England could be forced to raise interest rates this year as part of its battle against inflation
Soaring swap rates are pushing the cost of fixed-rate mortgages through the roof but they may be the only option for borrowers who cannot afford the risk of a Bank of England interest rate hike to control inflation. Figures from the Bank of England suggest the average cost of fixed-rate mortgages are at an eight-year high, averaging 6.92%. But historically, fixed-rates are low; the Bank of England’s average fixed-rate mortgage spiked to around 7.55% in 1998.