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Economists have once again offered contrasting views on the short-term chances\u00a0of\u00a0a rise in interest rates following this week\u2019s published inflation figures that showed the UK\u2019s Consumer Price Index (CPI) had climbed to 3%, it\u2019s highest level in more than five years.<\/p>\n
With poor economic growth figures, and uncertainty over the Brexit process, the Bank of England\u2019s Monetary Policy Committee\u2019s (MPC) decision on whether to raise interest rates on Novermber 2 will be in the balance \u2013 with many observers expecting to see the first rise since July 2007.<\/p>\n
Howard Archer, chief economic adviser to the EY Item Club, said of the situation; “While it is understandable that the MPC will want to gradually normalise interest rates from their current ’emergency levels’, we believe it would be better to do so once the economy is on a stronger footing.”<\/p>\n
A rise in the base interest rate will undoubtedly also see a rise in the very low home loan rates that are currently on the market, thus putting a further squeeze on many households across the UK who are currently witnessing rising energy and food prices, as well as wage rises that struggle to keep up with inflation. Therefore,\u00a0now may be the perfect time to assess your medium-long term mortgage situation.<\/p>\n
Here at The Financial Planning Group, we pride ourselves on being to offer our clients mortgage products from the whole market, which opens up so many more options and offers \u2013 we have more than 24 years experience in helping families find the perfect low-rate deals and ensuring that the financial side of moving home is as stress free as possible.<\/p>\n