Impending UK interest rate rise – the beginning of the end for low mortgage rates?
Mark Carney the BoE Governor had advised that the base rate will rise by the end of the year.
With an increase to the bank rate, the end of low mortgage rates is inevitable.
Those home-owners who have yet to lock into a low rate deal while cheap offers are available, are in for a bumpy ride and face economic hardship once rates increase.
Those who are on a cheap fixed rate deal will avoid being impacted immediately by rising rates. Home-owners who miss out on remortgaging to a cheap deal and default onto their lenders SVR could find themselves in financial trouble as the bank rate climbs.
With the announcement of this less than positive news, there is growing fear amongst estate agents any negative impact in house buyer confidence could lead to a housing market collapse.
Mortgage rates – where next?
While the BoE has advised the bank rate is likely to increase as we move into the new year, it is not likely that mortgage providers will wait that long.
The prediction is that over the coming weeks lenders best fixed rate offers will start being pulled. With the best 2 year fix currently sitting at 1.29% and 5 year deals starting at 2.18%, it is unlikely that today’s generation of home-owners will see such cheap deals again.
Those sitting on a tracker face hardship as rates rise, the advice therefore is to search the market by calling 0800 048 8828. Act now and find out what deal you could lock into before low rate deals are pulled altogether.
If you are facing a mortgage dilemma as to what to do in face rising interest rates, call us at Deal Direct for independent mortgage advice and a ‘whole of market’ search. We can search every lenders range to source the most competitive offer for your deposit level.
The impact of rising rates.
Recent studies have shown that around 33% of mortgage-holders will struggle to meet their monthly mortgage repayment should rates rise. If you are amongst this number don’t ignore the BoE warning of an impending base rate rise - act while you still can.
Call Deal Direct for advice and a low rate quote.
0800 048 8828.
