The Bank of England’s decision to increase the base rate to 4%, with an expectation it could increase further to a peak of 4.5% in March, was met with a reassured reaction from mortgage lenders, who believe the medium-term outlook is for rates to fall.
For example, despite last week’s Bank of England base rate rise, the long term outlook for fixed rate mortgages improved – the best five-year fixed rate now stands at 4.18%, with the best two-year fixed at 4.49%.
Here at The Financial Planning Group we understand the importance of confidence in personal finance issues and that borrowers are often seeking the certainty of a fixed monthly payment on their mortgages during the current economic climate. We are here to help you find the best possible deals and to make informed decisions.
Did you know you could remortgage and secure one of these fixed rate deals now, to start when your current deal finishes, which could be six months in the future? Should the lender subsequently reduce their rates, you can simply switch over to the new lower rate provided the deal hasn’t started. Acting now to secure a ‘worse case position’, knowing you could still benefit from any rate falls, could be a shrewed move.
If you or a friend or family member has a mortgage or remortgage situation on the horizon, and would like to talk though your options, please contact Steve Padgham via e-mail at Steve.Padgham@fpgonline.co.uk or by calling 020 8614 4782.