What to expect with mortgage rates in 2016.
While market analysts are not expecting interest rates to rise until late 2016, the same cannot be said for mortgage rates.
With news that banks will be expected to hold an extra 1% in reserves from next year, it is predicted that a mortgage rate hike is the way banks will raise this cash.
With rising rates on the cards at some point next year, you are recommended to get yourself a competitive deal while you still can.
Whether you choose a tracker or a fixed rate is down to how you feel about risk, the bank rate hasn’t risen for several years but at some point this will change.
Currently it’s believed that interest rates will rise in late 2016 or early 2017, the question is do you want to go for a tracker and risk an interest rate rise midterm?
If the answer is no, then a fixed rate mortgage could be a better option. Rates are highly competitive at the moment, but this might not continue to be the case as we go into 2016. To avoid missing out on a low rate mortgage call an adviser at Deal Direct on 0800 048 8828.
We are ‘whole of market’ which means we can contact ALL lenders market-wide, to find you the right mortgage at the right rate to make your home-ownership more affordable.
For mortgage advice and a low rate quote,
call 0800 048 8828.
