With the Bank of England's current inflation target sitting at just 2.5%, today's borrowers takin...
With the Bank of England's current inflation target sitting at just 2.5%, today's borrowers taking on substantial mortgages will not have the benefit of the higher inflation of the past to help erode their debt, advises IFA RJ Temple. The IFA is calling on homeowners to guard against the effects of a long-term low inflationary environment with stock market based plans to produce returns that outpace inflation. According to research by RJ Temple the average inflation rate over the past 25 years was 5.46%. Those higher rates reduced mortgage borrowings in real terms as inflation...
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