Earlier this week the Telegraph summarised some important trends in interest rates. Sounds like another boring finance articles, we know… but it has some important points to make about your savings and mortgage. This could very well effect your life at home, as your savings and mortgage interest rates are set to change in the future.
Over the past few years the predictions of what interest rates will do in the future has been that it will stay fixed until late 2016, but that’s just changed. A week ago the prediction was for rates to rise in March 2016, but now it’s drastically changed to October 2016.
Inflation is currently up 0.1% and unemployment is on the rise – there’s little short-term pressure for rate rises.
Despite China’s stock market crash some are still insistent that the first hike in interest rates will be early to mid next year.
In the short term, the prices on new fixed rate mortgage may fall a tad in coming weeks. Fixed rates remain low compared to tracker rates, especially on long term loans.
While it’s never wise to try to make a call on future mortgage interest rates, it never hurts to review the mortgage to check everything is as good as it can possibly be for your circumstances.
Active Brokers are located in Chelmsford, Essex and ready to offer you help no matter where you are in the UK. We have specialist mortgage advisers in house as well as Insurance and Will specialists along side them. With us, you can get everything sorted with no hassle.
This rate change calculator will be able to tell you how your mortgage will change if the rates increase.
This is even more difficult to predict. No matter what you decide on (between a fixed or variable rate) it’s still a bit of a gamble. There’s really no predicting what the rate changes here will be.
For more detailed information you can read the telegraph article here.