Mortgage rates are on the up despite revised base rate rise predictions.
Mortgage rates are on the up and could rise even higher despite current predictions for the BoE to hold the base rate at 0.5% until 2016 or even 2017.
The eurozone crisis has damaged the UKs economic prospects and home-owners are likely to be hit further by rising costs.
One area likely to be most impacted is that of mortgage costs. Lenders are increasing their mortgage rates in an attempt to shore up dwindling profits caused by increased funding costs.
The forecast for the first BoE base rate rise is now the furthest away it has been since start of the financial crisis. It is believed that the UK economy which has entered a second recession, would not be able to cope with an interest rate rise.
Money markets are pricing the end of 2016 or beginning of 2017 as the likely date for the first base rate, however this conflicts with the view of some economists who predict rates could start to rise sooner. This illustrates that forecasts and predictions are really just best guesses and are subjective.
What we do know is at present rates are rising, and those looking for a deal should source a competitive offer now.
Eurozone problems are having a knock on effect on borrowing rates which in turn is affecting mortgage rates, and despite the odd rate cut from lenders such as Virgin the general trend is for increasing rates.
Deal Direct are a 'whole of market' broker and as such are well placed to source you a competitive offer.
Contact an impartial Deal Direct adviser today for an up to date mortgage comparison.
