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Comment: Agents in demand as the interest rate rise sinks in

Economy
TTG Staff
9 February 2018

Well it finally happened. Just over three months ago the much-predicted interest rate increase happened. With things having settled down somewhat, now we can take a considered look at what effect the increase is having on the consumer and the travel industry.

Derek Moore opinion Chairman Aito

Clearly the most dramatic effect will be on mortgage holders. While the increase from 0.25% to 0.5% still leaves us with a historically low interest rate, Bank of England governor Mark Carney is on record as saying that there will in all likelihood be three more increases in the next two years. Since the recent increase will add, for millions, an extra £200 per year per £100,000 of mortgage, the wise mortgage holder will be factoring in where they will be financially in two years’ time, and that’s not good news.