There is one certainty of 2018; rates will go up and borrowing is going to become more expensive.
Last Thursday Mark Carney, governor of the Bank Of England announced that earlier and larger interest rate rises throughout 2018 are likely. The aim is to tackle UK inflation, the effect of a stronger global economy. Whilst the bank's monetary policy committee voted to leave the base rate at 0.5% this month, economists are predicting rises from May this year.
On a separate issue, banks and building societies will have to start paying back a loan of over £100 billion under the governments Term Funding Scheme. The scheme was originally designed to pass interest rate cuts (which were a direct result of the EU referendum) directly onto consumers by giving lenders access to cheap money. Now that they have to pay this back, the knock on effect will likely see an increase in mortgage interest rates, with economists predicting a 0.25% hike.
With mortgage rates still exceptionally low, now is the best time to remortgage and switch from a standard variable rate mortgage to secure a competitive fixed rate deal. If you are a first time buyer or looking to purchase an additional investment property, now is the time to get the best mortgage deal possible!
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Your home may be repossessed if you do not keep up repayments on your mortgage