Mortgage rate predictions 2014 – what could happen?
There is growing concern that mortgage rates could significantly rise in 2014. The BoE has revised its forecast of a likely interest rate increase, saying it could happen far sooner than predicted.
It was expected that the jobless rate would not reach the 7% threshold until well into 2016. It was upon reaching this level that the Bank advised interest rates would rise.
As jobless figures are falling far quicker than expected, it is now anticipated that the 7% threshold could be reached as early as 2015. Interest rates could therefore rise over a year earlier than first thought.
Increasing interest rates have a significant impact on mortgage rates, and with the release of this new prediction it is thought that mortgage rates could start to rise high next year.
For those mortgage-holders on a tracker or variable deal, the news that mortgage rates could rise high next year is not positive.
Mortgage-holders have become used to rock bottom rates, and for some an increase above their current level could mean they can no longer afford their home.
If you are concerned that you cannot afford a rate increase, you are recommended to seek impartial advice as to your options.
If for example you are coming to the end of an existing mortgage term, you could look at remortgaging to a low rate deal while rock-bottom rates are still on offer.
To avoid rising mortgage payments act now and seek advice from independent 'whole of market' mortgage experts Deal Direct.
Call for advice and a low rate quote.
0800 048 8828.
