Bank of England Rate Hike Surprises Lenders

The Bank of England has raised the bank rate by 25 basis points in a move that United Kingdom mortgage lenders say they found somewhat surprising."The timing of this rise is sooner than expected, although we had been forecasting higher rates," said Michael Coogan, the director general of the U.K.'s Council of Mortgage Lenders. He said "inflationary pressure appear to be more pronounced" in the United Kingdom. "Mortgage borrowers who are concerned about the impact on affordability can still consider a wide range of attractive fixed-rate deals," Mr. Coogan said. "Anyone borrowing on a variable-rate basis should factor in an expectation that rates have further to rise."