The Bank of England seem determined to keep a lid on inflation and property prices as interest rates go up yet again in 2007. The latest increase this month was the fifth since August 2006 and these increases now appear to be having an effect with house price growth slowing from previous months. It will probably take a few months for these rises to show their true effects and The Bank of England may decide to give homeowners a break for the rest of 2007 providing inflation stays under control but only time will tell and there will be many borrowers having to watch their summer spending.

Fixed rate mortgage borrowers will be feeling happy that they opted to pay a bit extra for their deals and even though fixed rate deals seemed to disappear for awhile earlier this year, there are now plenty available but the arrangement fees have gone up so be sure to shop around for the best deals out there.

Even though interest rates are still relatively low, they are now at their highest level for several years and potential buyers will be thinking carefully before making offers on property.