Last month Mark Carney warned that a base rate increase is likely towards the end of this year or very early in 2016. Although it’s expected to be a minor increase, it’s the general trend that home owners need to prepare for – it may be worth taking steps soon to get ahead of the game.
With lenders also expected to up interest rates on mortgages, making monthly mortgage payments more expensive, it makes sense to start looking for new fixed-rate deals before banks and building societies take action.
If you’re not among the 44% of home owners already on a fixed rate, you may be affected by increased rates if you wait another 6 months to remortgage. Or if your fixed rate loan is due to expire this year, it’s only sensible to try to clinch a cheap deal (there are plenty around at the moment) to remain protected from changes to your payments. If you’re a first-time buyer, then now’s the time to find an affordable mortgage.
Standard variable rates (SVRs) are a little different. After the crash not all lenders decreased rates along with the Bank of England – many stuck at 5%. Until the base rate goes up considerably, they are expected to remain unchanged. But borrowers with an SVR mortgage under 5% are more likely to see payments go up.
Of course, trackers will go up in line with the base rate.
We’ve got our eye on the market. So if you want to beat lenders’ rate rises, call us today on 01223 266140.