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UK record drop in inflation for June
The UK recorded a decrease in the rate of inflation for the month of June, which even caught some experts by surprise. The rate of inflation in June was recorded as 7.9%, which is a 0.8% decrease from May’s 8.7% figure. This means that the UK is currently experiencing inflation at its lowest rate in more than a year.
Banks to offer more options to struggling borrowers
Homeowners with a variable rate mortgage will see their mortgage repayments increase significantly once again, putting more pressure on scores of households. Since the rate announcement, Jeremy Hunt met with bank leaders in Downing Street to come up with ways to help struggling mortgage borrowers.
How do UK prices compare to EU countries?
With inflation a global problem, it will be interesting to see how the price of UK supermarket goods compares to nearby countries.
UK inflation down to 8.7% but food prices still rising
The UK’s rate of inflation from the year to April was recorded by the Office for National Statistics (ONS) as 8.7%. This is a decrease from 10.1% in March, but inflation has remained higher than the 8.2% estimates from experts. Despite the decrease in the rate of inflation, food prices have increased at a rate not seen for around 45 years, which may be why inflation hasn’t decreased to the levels expected.
Short-term or long-term fixed mortgage?
A fixed-rate mortgage is a mortgage where the interest rate is fixed for a pre-determined period. The lender cannot increase or decrease the interest rate during this time regardless of what happens to the economy or the Bank of England’s base rate of interest. At the end of the fixed-rate deal, the mortgage will switch to another type of mortgage, typically a variable-rate mortgage where the interest rate can change.
