Not only have interest rates been rising ten to the dozen, but as of the beginning of February, the Bank of England (BOE) has now raised the base rate ten times – in just over a year.
On the 2 February, the BOE took the base rate from 3.50% to 4.00% as it faces ongoing pressure to curb inflation, which, thankfully, is beginning to slow down. Of course, the rate rise is likely to be unwelcome for those on a tracker mortgage or standard variable rate (SVR) mortgage – but as a Guildford mortgage broker, we have two points to say on that.
Firstly, if you’re currently on a tracker mortgage – and depending on what the tracker mortgage rate is, of course – there is a strong chance that even with a base rate of 4.00%, it will still be cheaper than taking out a fixed rate mortgage.
Secondly, if you are on a SVR mortgage, then you need to change it – immediately. There really is no reason to be on the SVR, at all. And, if you’re a Complete Mortgages client, then we will never let you be on it, as we’ll proactively contact you with plenty of notice to ensure that you get the best UK mortgage rate at any given time.
But back to interest rates.
Have we reached the peak?
Trying to time the mortgage market is like trying to time the stock market. It’s impossible. There are too many variables, all of which are simply out of your control. But it’s understandable to ask yourself ‘will interest rates rise again soon?’, particularly if you’re either applying for a mortgage or need to remortgage.
When it comes to getting the best mortgage deal right now, there are two things happening. First of all, experts are predicting that the base rate will top out at 4.50% later this year. Whilst nothing’s certain, it gives you something to consider if you’re thinking about applying for a tracker mortgage. When it comes to getting the best fixed rate mortgage deals, it’s important to remember that these are starting to fall and become more competitive.
So, have we reached the interest rate peak? We would say no, but we feel that we’re about to enter the final push.
How will the interest rate rise affect me?
If you need to get a mortgage now and are trying to establish the best route for you, our advice would be to contact one of our Guildford mortgage advisers, who will be able to explore your personal and financial circumstances, and recommend the best mortgage deal.
In the current climate, whereby things are changing on a frequent basis, it’s very difficult to make a decision unless you’re armed with the right amount of knowledge and are receiving the best mortgage advice.
So, don’t waste time and get it wrong. Get it right first time by speaking with our team of Surrey mortgage experts.
Struggling to keep up with interest rate rises and unsure what the current interest rate rise means for you? If so, contact one of our Guildford mortgage brokers on 01483 238280 or e-mail info@complete-mortgages.co.uk.
Recent Comments