Inflation Rates highest in 40 years

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The cost of living crisis continues to effect families around the UK and it now seems almost certain that inflation will pass the 10% mark within months.

The Bank of England estimates that inflation rates will hit 11% by October.

Rising food and non-alcoholic drinks prices, compared to falls last year is what has nudged inflation rates up according to the Office of National Statistics.

Simon Webb, managing director of capital markets and finance at LiveMore said – “Inflation has risen yet again and expected to move to 11% in October when the next energy price cap is set. The Bank of England is under pressure to tighten monetary policy even further and inevitably lift the base rate throughout the rest of this year and potentially into 2023.

“But homeowners can beat inflation by taking out a long-term fixed rate mortgage keeping their payments the same each month while the cost of living goes up.”

Simon is absolutely right, there are very few instances where we won’t recommend a fixed rate product in this market.

It’s important to act quickly, as lenders will continue to increase their interest rates on products throughout 2022 and into 2023.

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Prospect Tree Mortgages are independent mortgage experts based in Ashford, Kent. We are able to service customers from all parts of the UK. Being independent means we have access the whole of the UK mortgage marketplace so we are best suited to help you find the mortgage which suits you best.

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