Bank of England hints at likely increase in mortgage interest rates
28th September 2017
It has been widely reported in the press that the Bank of England is likely to raise interest rates for the first time in over ten years, which could see the cost of your mortgage increase.
The reports follow a recent speech given by Governor of the Bank of England, Mark Carney, in which he said: “some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target.” However, he also added, though that any rise in the base rate would be at “a gradual pace and to a limited extent”.
While any increase in interest rates is likely to be welcome news for savers, the cost of mortgages would also go up. The immediate impact would be felt by those on tracker or other variable rate mortgages, but we anticipate that the most competitive fixed rate mortgage deals will start to be withdrawn as rates rise.
Some lenders have started to respond already, however, there are still some extremely competitive rates out there. If you are coming towards the end of a fixed term, or are currently on a variable rate mortgage, now is an ideal time to review what other deals are available, so you have the chance to take advantage of rates which may no longer be available in the coming months.
The Bank of England’s next Monetary Policy Committee decision on interest rates is scheduled for November 2, when it will also publish its quarterly Inflation Report.
As an independent mortgage specialist, my role is to help you navigate the full range of suitable mortgages from the whole market, and help you identify the best deal for your situation. To find out more about your mortgage options and how we can help, please get in touch on 01926 422292 or by email at Ian.Chetwynd@hboltd.co.uk.