Will you be impacted if rates rise in 2016?
With predictions of the first interest rate rise in years likely to be next year, mortgage holders should consider how they will be affected if mortgage rates rise.
It is looking likely that lenders will begin to up their rates before interest rates are hiked, as they will be required to carry more in reserve. Fear of rising mortgage costs are not unfounded, and home-owners should search the market to lock into a good deal while they still can.
With an interest rate rise, mortgage rates will not be the only loan costs to rise. In addition, credit card rates and new loan rates will also increase. This will mean borrowing money will cost more and household outgoings could significantly rise. If you are concerned that as the bank rate rises you could face a financial struggle, lock into a cheap rate.
Locking in to avoid switching to an SVR makes sense because standard variable rates will be impacted almost immediately by an increase in interest rates. This means if you are on this type of deal you will be hit by extra costs.
If you are wondering if you need to fix your mortgage now to avoid being hit hard by rising rates, call us at Deal Direct for impartial advice.
We can make a review of your finances to see what low rate offers are available to switch to at your deposit level.
Don't despair, interest rates may go up but we can help you find a competitive deal to lock into now.
For advice and a low rate quote call us today on 0800 048 8828.
