What about the second chill of winter that may well hit us on Thursday, what do you mean you may well ask! Tomorrow the Bank of England Monetary Committee will be sitting for their monthly debate on the UK economy and are likely to make decisions that will affect us all. As previously mentioned by myself and many financial pundits the likelihood of interest rate rises are imminent. The markets have already factored this in with an 82% probability that this will happen soon. It is likely to be a very close call on whether this will happen tomorrow or within the next few months.
For those many home owners who are still on variable rate or tracker rate mortgages, time is running out to switch to a safer fixed rate mortgage and benefit from the historically low rates still being offered by mortgage lenders. With two year fixed rates starting from 1.25% and five year rates from 1.79%, surely this must be the critical time to make that decision.
Obviously I do not want to appear alarmist and these comments I am making are very much a personal view built upon what I am hearing and sensing by being in my position as an experienced mortgage broker. In fact I have just switched from a variable rate mortgage myself into a five year fixed rate mortgage and I feel much better for doing this.