Since the financial crash, home owners have been warned again and again that mortgage rates are set to rise, but each time it has proved a false alarm. So should borrowers really be worried by the Bank of Englands latest warning?
The answer is YES – and if you haven’t already protected yourself from looming rate rises, you must act now. Crucially Mark Carney the Governor of the Bank of England went far further than before in saying rates could start to go up by November. This may only mean a 0.25% rise in the first instance taking base rate back to 0.5%. But economists think that once the hikes start they’ll keep coming. Banks and building society’s will respond by increasing their mortgage rates to boost their profits.
The timing has never been better and there’s now no excuse not to fix your loan rate. Why? Normally when there is a prospect of rates going up we will see mortgage rates jumping up in advance and lenders cutting their best deals. But over the past two weeks we have seen major high street mortgage lenders slashing their fixed rate mortgages. So whats going on? In a fortuitous bit of timing for mortgage borrowers the talk of an interest rate rise has coincided with the end of the financial year for banks and many are in danger of missing their lending targets – so they are desperate to get mortgage customers.
With £35 billion worth of customers fixed rate deals coming to an end in October & November, plus many thousands more still on variable and tracker rate deals, this is going to be a busy time for lenders. It is unlikely these amazing mortgage deals will be around for more than a few weeks, so you will have to move fast.
Let us help you with sourcing the best possible mortgage deal and we will take away the time and stress of dealing with mortgage lenders.