(1888PressRelease)
May 11, 2007 - The Bank of England's monetary policy committee (MPC) is widely expected to raise the base rate by a further quarter point to 5.5 per cent at its May meeting this week.
In fact, analyst Philip Shaw, of Investec, told the BBC that he was "convinced" that the MPC will raise rates - and predicted that the hike could in fact be as much as 0.5 per cent.
Regardless, many experts have suggested that at least one more 0.25 per cent raise - in addition to the increase expected tomorrow - is likely before the end of the year and have expressed concern about the potential effects on consumer finances.
Further warnings have also been issued by economists about the current unpredictable nature of the housing market, which has fluctuated between dipping and rising in recent months.
Certain analysts have suggested that a rise in interest rates to counter rising house prices and inflation rates could have a detrimental effect on markets, as consumers struggle to meet higher repayments.
Britain currently has a consumer debt mountain of more than £1 trillion and households will be facing steeper interest payments on mortgages, loans and credit card debts if interest rates are increased.
Julian King, Director of National Homebuyers confirms, "We have been predicting sizable rate rises for some time. We have been steadfast in predicting a 0.5 per cent rate rise this time around and we stand by out convictions."
National Homebuyers is the UK's leading fast purchase property company, solving thousands of peoples' property nightmares every year. King continues: "We have been experiencing a huge influx of enquiries from people who are concerned about their mortgage bills over the last few months.
"We are confident in this continuing to augment following the rate rise this month. We are always happy to discuss peoples' concerns and find solutions to help their situation."
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