(1888PressRelease)
June 20, 2007 - The Bank held rates at 5.5 per cent yesterday afternoon, but trends suggest that inflation - currently running 0.8 per cent above chancellor Gordon Brown's target of two per cent - has not yet been fully quelled.
Manufacturing optimism in terms of how far they feel they are able to raise prices reached a 12-year high last month, Bloomberg has reported, with investor figures suggesting that rates of at least six per cent would be required to ease inflationary pressures.
"The longer the Bank of England takes to get this burst of inflation under control, the worse the news will get,' commented former government advisor Tim Congdon, speaking to the news agency.
Fast purchase property firm National Homebuyers says interest rates are currently at a six-year high, meaning keeping up with the cost of mortgage repayments is already a bridge too far for many homeowners.
Director Julian King comments: "Repossessions are at an all-time high and homeowners are seeking solutions to the financial problems caused by being overstretched.
"Our business arranges for the fast purchase of properties to alleviate financial problems and over the last 12-months we have seen an unprecedented increase in enquiries from those who are genuinely worried about losing their home."
"Our evidence shows it only takes a very small change in people's circumstances to tip them from manageable credit commitments into serious debt," Mr King added.
"We know that some people are taking on mortgages that stretch them to the absolute limit.
"Any increase in mortgage interest rates could spell disaster for people whose finances are balanced on the very edge of affordability."
National Homebuyers is the UK's leading fast purchase property firm, solving many thousands of homeowners problems who need to sell their property quickly.
Advice from National Homebuyers is available at www.nationalhomebuyers.co.uk/index.asp or by calling 0870 979 8118.
