Rates are rising for sure, and with the Bank of England’s announcement that the base rate will now rise by 0.5 percentage points to 2.25%, the highest level since 2008, homeowners and investors alike will really be counting the pennies.
Last week I was interestingly asked about an onward index swap (OIS) curve and what that meant for interest rates! Whoop.
As you can see, it’s a very specific and clever question, but what does that actually mean, and is it relevant in determining rates/inflation and in turn the value of your home? Remember, the UK’s is a debt-driven economy, and the comfort of having equity (a gap between your home’s value and debt/mortgage) is the big confidence driver for the economy. In reality it should mean nothing other than: “You have X amount of debt”.
