Will interest rates rise?
15th June 2010
Michael Arthan from Barbers comments on the Bank of England’s decision to retain the Bank base rate at half of one percent for the sixteenth consecutive month.
“With the new government only a week away from their emergency budget it comes as no surprise that once again interest rates stay at half of one percent for the 16th consecutive month. These low interest rates perhaps tells us something about just how fragile our economy is, as presumably the feeling is that if interest rates were to rise this would stop the slow economic recovery that is underway.
However, here are some of the positive aspects of these low interest rates:
- Many borrowers have enjoyed a period of exceptionally low mortgage interest repayments
- Those who had the foresight to opt for a tracker rate have been able to really reduce what for most is their single biggest monthly outgoing
- There are some very attractively priced products at the present time
- The pricing of fixed rate deals is also at an all time low level as evidenced by information published by Moneyfacts
Although no-one knows when interest rates will rise and by how much, home buyers and existing borrowers looking to remortgage now have a good choice of products. With the number of mortgage products available at a 12 month high, prospective borrowers would be well advised to seek the advice of an independent mortgage broker to steer them through the thousands of deals that are available currently in the market before committing to a particular rate.
For further information on how the latest base rate decision affects you, please contact any of Barbers offices:
Market Drayton- 01630 653641
Newport- 01952 820239
Shrewsbury- 01743 276200
Wellington/Telford- 01952 221200
Whitchurch- 01948 667272
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.
