how does the bank of England setting interest rates affect people unless they have a mortgage with thebank of England because don't individual banks set their own interest rates? Sorry if this is a stupid question I just don't understand it
As I understand it a matter of supply and demand. Bank of England is a central bank. A central bank has the authority to set a target rate. It then uses it powers to borrow lend, and print money until there is sufficient demand or supply of money to cause interest rate to move to the target rate.
there is no DIRECT correlation between the interest fee (value of borrowing ) and domicile fees. domicile fees are tormented by various factors which finally boil right down to grant and insist. That suggested while the cost of borrowing will improve human beings frequently the two have much less disposable earnings (greater is going to provider present day debt) and or do no longer borrow as a lot. notwithstanding loan provider will tinker with the earnings / borrowing ratio and improve new products to motivate custom. In end, an improve interior the backside fee might have an effect (decelerate domicile fee improve) yet it is purely certainly one of various factors affecting fees - the closure of a community college as an occasion might have a miles greater suitable impact in a specefic section. So there you have it - clean as dirt !!
