Bank of England Interest Rate Rises again!

The Bank of England has raised the interest rates by 0.25% so that now it stands at 5.25%. It is expected to increase to 5.5% by the end of 2007. What that means is that it is now much more difficult for first-time buyers to afford a home. The links below give more insight into the consequences of this interest rate increase:

And me who wanted to climb on the property ladder this year! Well it does not look very promising, does it? The average 2 bedrooms house just outside London costs £180K and with £150K you will just get a flat. Who wants a flat anyway. Well not me – i hate annoying neighbours and prefer my own space. Not even sure if i’m eligible for a £150K mortgage, what am i talking about eh? Let’s just hope i win the lottery in the coming month 🙂

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