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Mortgages – when will interest rates rise?

It’s been a busy couple of months for monetary policy. One of the more notable things to have happened is the Bank of England Monetary Policy Committee voting unanimously to keep interest rates on hold. It was the first time since July last year that the committee had voted unanimously and were prompted to do so in the face of tumbling inflation. One never knows for sure but it is ours and the money market’s opinion in general that interest rates are projected to rise towards the end of 2016 and the massive European Central Bank Quantitive Easing programme will possibly push this further into the future.

All of this news is good news for people with mortgages or looking to buy a house. Interest rates are, and have been for a very long time, at historically low rates with the base rate at 0.5 per cent. But even given the good news, it is always a sensible thing to review your current mortgage arrangements to check whether it’s the best arrangement for you now and in the future. If you’re not locked into a mortgage product, or if you are coming to the end of term on a particular product, it might be sensible for you to lock into a fixed rate given the news last week. Whatever your choice it will be a personal choice based on your preferences and attitude to factors such as risk.

The information in this blog represents the opinion of Clayton Holmes Naisbitt and is for information only. You should always seek independent financial advice before taking action.

The choice of currently available mortgage products is vast so, if you want further advice and information, please feel free to contact Clayton Holmes Naisbitt on 0113 387 8240