Mortgage interest rates of around 2% could be with us until 2020, according to the former chair of the Financial Services Authority, Lord Adair Turner. Lord Turner’s prediction was made on BBC Radio 4’s Today programme, in which he also commented that the bank lending rate of 0.5%, that has remained at a record low since March 2009, could be here “almost indefinitely”.
In light of this, mortgage approvals for house purchases rose by 18% year-on-year in December, whilst the number of remortgage approvals rose by 27% from 32,847 to 41,708 year-on-year.
Growing numbers of homeowners are wising up to the fact that it pays to remortgage, particularly if moving from a poor value Standard Variable Rate. Borrowers who are comfortable with a long-term commitment can take advantage of today’s rates by locking into a fixed product, avoiding higher mortgage bills when an interest rate rise eventually kicks in.
If you are considering a house move, a buy to let purchase, or would like to take advantage of one of the many attractive mortgage deals currently available because of a mortgage product that is up for renewal in the short-medium-term future, we’d be delighted to help talk through your options.
Remember, here at The Financial Planning Group, we are able to secure a mortgage deal six months ahead of your current deal ending, which makes it possible for our clients to reserve the best rates – regardless of what the market does in that period. As impartial independent financial advisers we can help you in making the right choice.
To speak to Steve Padgham about your property finance or mortgage requirements, please call him on 020 8614 4782, or e-mail email@example.com.