How could an interest rate rise affect you?

Are mortgage interest rates set to increase?

The next opportunity for a change in interest rates is just around the corner and there is wide spread speculation that rates are now set to rise.

Predictions of a 0.25% increase in the bank rate are rife, having been fuelled by the Governor of the Bank of England, Mark Carney, stating that he expects an interest rate rise in the ‘relatively near term’.

If this happens then now is the right time to be considering your mortgage options. For those that have been comfortable sitting on variable rates in recent times a switch to a fixed deal over 2 to 5 years would be a sensible strategy and provide certainty as rates start to increase.
Interest rate predictions have already seen lenders withdrawing some of the lowest rates on the market and a rate rise could have a further impact on product availability.

For those of you who have held mortgages over the years you will remember times of higher interest rates and the impact that these rates can have on your household budgets. We believe that planning in anticipation of change will help you to manage your budgets and alleviate the pressure of any increase.

So if you feel that rates are set to rise then it may be worth reviewing your mortgage needs with an adviser.

As always we are here to help and should you require advice on this or any other financial matters then please contact our office to arrange a FREE initial discussion.