Bank of England holds interest rates
Despite many predictions that there could be a rise, the Bank of England has voted to hold interest rates at 0.1%. On 4th November, the Monetary Policy Committee (MPC) opted to “wait and see” how the job market coped over the next month and voted for no change from the current record low rate*.
What does this mean for mortgage rates?
Adam Nanson, impartial mortgage broker from Your Mortgage Expert in Salisbury comments on what the vote to hold interest rates might mean for mortgage rates and home owners:
“With inflation rising, it had been widely predicted that the base rate was going to increase. In fact, some mortgage rates had already started to go up slightly ahead of the actual vote on 4th November*. Natwest, TSB and HSBC have all increased their rates over the last few weeks.
“However, we should not rest on our laurels as the Bank of England has warned that the base rate may have to rise over the next year to help battle inflation. And, this will mean that mortgage rates will go up accordingly.”
What does this mean for Home Owners?
“Firstly, I would say there is no need for current borrowers to panic. The Bank of England has voted to hold the interest rate for the time being. While we have seen some rate rises over the last few weeks, there’s no expectation that mortgage rates are going to shoot up any time soon. Rather it is predicted there will be a slow and measured increase of rates***.
“We would advise, if people are thinking about changing their mortgage, to speak to their Mortgage Broker now. This will enable to secure a mortgage at a very competitive interest rate and also give them financial security with regards to future monthly mortgage payments.
“By speaking to an experienced broker like Your Mortgage Expert, you will be able to fully understand your financial position. 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.
“Searching the market yourself can be time-consuming. But with our help, we can search thousands of mortgages, including exclusive deals and lenders that you wouldn’t otherwise have access to. We have regular contact with a wide range of lenders, some of whom you may not even know exist! With our help, you won’t have to search or contact each individual lender in order to compare the mortgage terms and rates; we’ll do all that for you.”
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. Your Mortgage Expert Ltd and Mortgage Advice Bureau 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.