Despite some predicting a rise this month, the Bank of England has announced that interest rates have frozen at 0.5%*. Many homeowners may be wondering what this means for mortgage rates and whether now would be a prudent time to fix their rate. Adam Nanson from Your Mortgage Expert comments below:
What this means for homeowners
“It’s been an interesting start to 2018. With freezing temperatures and spy poisonings in Salisbury, the economic climate has been more sluggish than expected. And, as such, the Bank of England has decided to hold interest rates at 0.5%.
“However, the economic climate is expected to improve over the forthcoming months. It is therefore predicted that interest rates may increase towards the end of the year, with further rate increases expected in 2019 and 2020.
“And, if the interest rates go up, then most likely, mortgage rates will follow suit.”
How Your Mortgage Expert can help
“If the experts are correct and interest rates go up later this year, this means you only have a few months to switch your mortgage if you were thinking about doing so and if your current deal has ended or is coming to an end. By fixing your mortgage on a lower rate now, this could shield you from higher monthly mortgage payments should the interest rate increase as predicted.
“If you are thinking about switching your mortgage deal, we would really encourage you to speak to your mortgage broker. We will take time to review your situation to establish whether you could be paying too much, whether you would save money by switching to an alternative product and whether any fees would be payable should you do so.”
If you are interested in having a no obligation chat about your mortgage, why not get in touch? We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. TenetLime cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
YOU MAY NEED TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.
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