The Bank of England’s governor, Mark Carney recently said that there is “no pre-set course” for raising the BoE base rate, but lots of economists reckon that the rates will probably rise soon. The base rate is what it costs for banks to borrow from the Bank of England, so rising base rate affects lenders’ rates too.
Back in April, I blogged about the trend for people choosing fixed-rate mortgages above SVRs (Standard Variable Rate). One of the most compelling reasons to fix is in anticipation of rising interest rates. If you fix the terms of your mortgage, rising rates don’t affect you during that term.
At the moment, a lot of people are sitting on the SVR (Dan discussed the SVR here). Many people may be getting a decent deal on their current SVR, but it’s a risky position to be in as rates begin to rise.
When rates increase, the great fixed-term deals out there now will become harder to find, and mortgage repayments will go up. It is a good time to seriously consider moving to a fixed-rate mortgage product if you’re on the SVR, or if your fixed-rate term is coming to an end shortly.
Give us a ring straight away, and we will look at your financial particulars, and make sure you are getting the best deal you can for your mortgage!