The UK has seen its first interest rate hike since July 2007. The rate has been increased from 0.25% to 0.5% following the Monetary Policy Committee’s (MPC) 7-2 vote in favour of the rate hike. The MPC has justified this rate increase – the first in 10 years – by highlighting that unemployment sits at a record low, consumer confidence is high and global economic growth is on the increase. Mark Carney, Governor of the Bank of England, made the announcement a short while ago. From a real estate perspective the cost of borrowing will increase, and this will be the first time many homeowners and consumers will experience the impact of what the rate rise actually means for them. As an example a GBP 500,000 mortgage, may cost an extra GBP 100 per month. Mortgages, credit cards, personal loans will see interest rates increase. The interest rate rise sets a tone for further possible rises in the coming year, which could take the rate to 0.75% and 1% respectively. The rate increase had been widely anticipated. The infographic chart from the Bank of England and courtesy of the BBC tells the story of UK Interest Rates since 2000 when they stood at 6%. For residential and commercial real estate investors it makes for interesting times ahead. Ultimately interest rates still sit a record-low levels.