Qualified advisers answering your
Financial Questions
call 0800 092 1245

Nationwide predicts another interest rate rise

Despite February's interest rate level not having risen, financial experts have predicted that homeowners could still see an increase very soon.Economists at Nationwide building society have forecast that the bank will increase the interest rate in order to bring it in line with house price inflation. Nationwide figures show that the average house price is has increased to £174,706 - a rise of £16,000 from last January. Fionnuala Earley, Nationwide's chief economist, indicated that recent rate hikes, as well as other factors, have affected the market but predicts stability due to lack of housing stock.Ms Earley commented: "While the three recent rate rises now seem to be starting to take their toll on the market, not all indicators are cooling just yet. Buyer interest and mortgage demand are waning, but the supply of properties coming onto the market remains low." She predicted: "This lack of supply will mean that house price inflation will remain firm for a while longer, before gradually easing."Prices rose by a steady 0.7 per cent last month, pushing the overall annual speed of escalation of property prices back up to 10.2 per cent.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details