Bank of England Governor Mark Carney has hinted that interest rates could rise from the record low of 0.5% since March 2009 – which could be a sign that mortgage rates are now at rock bottom.
Bank of England statistics show that currently 44% of homeowners are on a fixed rate, with most of these being first time buyers or movers that have taken advantage of record low rates.
However this also means that 56% of homeowners are currently have a Standard Variable Rate mortgage or a tracker deal. Many of those will be on a lifetime tracker which means they will be hit with rates nudging up and will have some difficult decisions to make, ride the hopefully incremental rate rises of 0.25% or jump ship now and take advantage of the current low fixed rates?
A useful starting point is to stress test your finances and see how you could cope with an interest rate rise, if you feel that the predicted rise to 1.25% by the end of December 2016 could affect your household then now is maybe the time to start looking at your mortgage.
To discuss your current mortgage deal or look at the current fixed rate deals call our mortgage advisers on 0800 612 8099.