Following the Bank of England’s ‘Super Thursday’ meeting in London, the Bank provided the latest Quarterly Inflation Report alongside its August Interest Rate decision – although the base rate remained frozen at its historical low 0.5% figure, the Bank pushed back expectations of when inflation will return to target, whilst remaining confident they would start to rise in line with current market expectations.
However, it would appear that Interest Rates are expected to rise earlier in 2016 than previously expected, then climb higher sooner. February 2016 is widely expected as the month that rates will start to increase.
Although this may be good news for savers, it gives home owners, who are not currently on fixed rate deals, and other borrowers, around six months to prepare themselves for an increase in their monthly repayments, or to look around for a deal that better suits their budget.
It should be noted that a year ago residential mortgage rates were at the same level as they are today, so there are still some very low rates available.
It should also be remembered that, 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.
Here are a few examples of rates that are currently available:
- Fixed Rate 2 year: 1.25%
- Fixed Rate 3 year: 1.85%
- Fixed Rate 5 year: 2.29%
- Buy To Let 2 year fix: 2.02%
- Buy To Let 2 year tracker: 1.95%
- Buy To Let 5 year fix: 3.09
Speak to Steve Padgham about your property finance or mortgage requirements, please call him on 020 8614 4782, or e-mail firstname.lastname@example.org.