The Bank of England is set to meet on Thursday (2nd August) to discuss interest rates. Indications are that the Governer, Mark Carney, will announce an interest rate rise for just the second time in almost ten years, with the last rate rise coming in November 2017.
What does an interest rate rise mean for mortgage owners?
For those with a long-term fixed rate mortgage, there really is no change. Your mortgage payments will be fixed over the term of your agreement.
For those with a fixed-rate mortgage term coming to an end in the next three to six months, there is a likelihood that your renewed mortgage rate may go up in parallel with the Bank of England base rate rise, which in turn may lead to higher monthly payments. Despite being held within a fixed term deal, now is a great time to review the options available to you. Your City Mortgage Solutions broker will be able to review your situation and provide you with the best possible advice while securing the right mortgage deal to suit your circumstances.
For those who are currently outside of a fixed rate mortgage deal and are on a standard variable rate, mortgage payments are likely to go up from next month, should the Bank of England raise interest rates as expected. If this is a situation you are likely to find yourself in, your City Mortgage Solutions broker will be able to provide you with the right advice – saving you both time and money in the process.
Mortgage owners should consider that, while an interest rate rise is expected by analysts, it doesn’t necessarily mean it will happen. The announcement on Thursday will clarify the Bank of England’s position.
Should you have any questions about your current mortgage situation, we would urge you to speak to your City Mortgage Solutions Broker who will be able to provide you with the appropriate advice to suit your circumstances. With an announcement due on Thursday, now is the time to act.
If you do not currently have a relationship with a City Mortgage Solutions broker, feel free to call our Head Office and a member of the team will be happy to help. Alternatively, you can make an appointment to visit us at our central London office.