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In an unexpected move, the Bank of England today increased the base rate to 5.25%. After the two recent quarter point increases, commentators were not generally expecting any movement so early in 2007.

A quarter point rise will cause an increase of £16 to a 25 yr £100,000 repayment mortage’s monthly payments, while an interest only mortgage would increase by nearly £21.

The rise is believed to be an early reaction to a further increase in inflation – which rose to 2.7% recently.

The Bank of England have voted on the base rate this month, and have chosen to keep the rate at 5%.

This was widely expected by analysts after the base rate having having two 0.25% rises in the last 4 months.

The Bank of England has today raised the base rate to 5%. The increase was widely expected, and is aimed to help bring inflation down to more acceptable levels.

The rise to 5% brings the base rate to its highest level in five years.

Opinion is split over further rises in the base rate in the new year.

New data from the Land Registry shows that average house prices have risen above £200k – to £211,453 to be precise.

Data from the Land Registry is from actual sale prices – unlike estate agent figures which come from market prices.

The most expensive place to live was Kensington & Chelsea, where a detached property would cost £5.6 million on average. In comparison, a detached house in Kingston Upon Hull would cost around £165k.

Prices have risen by 8.7% since this time last year, with prices remaining strong despite the recent rate rise, and further expected rises in the near future.

The Bank of England has announced its decision for October – it has decided to keep the base rate at 4.75%. This decision was expected, although market commentators are expecting another quarter point rise in the not too distant future.