Over the past few months, the Bank of England’s Monetary Policy Committee has sent clear signals that it intends to tackle inflationary pressures by restoring its Official Bank Rate back to its pre-Covid level of 0.75%, which of course leads to mortgage rate rises.
Global uncertainty, including war in Ukraine, is also having a direct impact on personal finances in the UK, with price rises in almost every aspect of life – this economic uncertainty is further complicating the Bank of England’s decision making.
The quarter-percent increase in March means the Bank has now raised interest rates at three meetings in a row – for the first time since 2004 – and with inflation tipped to reach 8% in the second quarter of 2022, further rate rises can’t be ruled out… in fact many economists believe they should be expected.
Therefore, fixing our largest outgoings and ensuring we are protected from ‘avoidable’ price hikes is something we should all be considering. For many people, it is our monthly mortgage repayments that are most exposed to interest rare rises, and we should be constantly monitoring if we can switch to a longer term fixed rate to provide a greater level of security and peace of mind.
Here at The Financial Planning Group, as well as providing access to the best fixed-rate mortgage deals from across the whole industry, rather than from just one or two lenders, we are able to reserve the best rates currently available for our clients for eight months. This can prove invaluable and reassuring.
If you’d like to discuss the best way of securing a longer fixed rate mortgage deal then please do not hesitate to contact Steve Padgham at The Financial Planning Group via e-mail at Steve.Padgham@fpgonline.co.uk or by calling 020 8977 7090.