Now’s the time to ‘fix’ your mortgage with deVere United Kingdom

Bank of England governor, Mark Carney announced this week that interest rates are set to rise to an estimated 3 per cent by 2017, six times more than the present 0.5 per cent.

Whereas this is positive news for Britain’s savers, who have suffered record low interest rates since 2009, it could potentially signal future financial difficulty for borrowers.

The increase had to come sooner or later, after five years of rock-bottom interest rates; indeed the only way has to be up for the historically low bank rate.

I fully expect that this news will lead to an upsurge of homeowners, quite understandably, wanting to fix their mortgage rates before the predicted rise in rates comes into effect.

Now’s the time for first-time buyers to get on the property ladder, or people wanting to re-mortgage shouldn’t wait too long, as there are some exceptional long term fixed rates on the market right now, that will not be available when the base rate begins to increase.   deVere United Kingdom has specialist mortgage consultants who help clients find the perfect mortgage or re-mortgage solution. When re-mortgaging deVere United Kingdom can ensure clients take advantage of deals where valuation costs and legal fees are free of charge.

A large number of our clients chose to remain on the standard variable rate cent five years ago when interest rates dropped, as there wasn’t a lot of difference with the fixed rate at the time.  However, changing to a fixed rate mortgage now can see rates as low as 2 per cent for two years, or 3.5 per cent for three years.

As house prices throughout the country continue to follow an upward trend, and activity throughout the housing market is generally at its highest over summer, many buyers may have to reconsider their options to ensure they can still afford repayments when the cost of borrowing increases.

Mark Carney, the Bank of England governor, stated yesterday that many homeowners could find themselves in “vulnerable positions” as interest rates rise.

deVere Group International Investment Strategist, Tom Elliott says of the rise:  “It isn’t because inflation is a problem, it is because the Bank of England is keen to get out of the ultra-low interest rates environment.”

So what does this mean for homeowners who benefitted from the government’s ‘Help to Buy’ schemes?  Over 20,000 people have been able to get on the property ladder thanks to the ‘Help to Buy’ equity loan and guarantee scheme, which allowed mortgage eligibility with deposits as low as 5 per cent.  However they may soon be scrapped as warnings of price hikes come to fruition.  Inflated house prices are the principal threat to this scheme, as they could create an expensive ‘property bubble’, which could hamper future generations’ chances of owning their own home.

If, as the bank of England governor said this week, the economy will become one of the fastest growing in the developed world and return to pre-crisis levels as interest rates continue to rise, then seeking advice from a qualified mortgage professional is crucial.

By taking action now by contacting a deVere United Kingdom mortgage consultant, homeowners could benefit from the currently low fixed rates and avoid taking on potentially more debt.

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Mike is recognised at the forefront of financial planning as a financial advice mentor who demands only the best outcomes for both individuals and businesses he works alongside.

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