Rise in Interest Rate to Impact Mortgages
Yesterday, the Bank of England has raised the interest rate for the second time in a decade.
The rate has risen by a quarter of one percent, from 0.5% to 0.75% – the highest level since March 2009.
Whilst this is great news for those with savings, more than three-and-a-half million residential mortgages that have variable or tracker rates are likely to rise as a result of the rate increase.
However, buyers shouldn’t panic, as there are still some very good long-term fixed rate deals out there which can give you peace of mind from this or any other future interest rate fluctuations.
According to Tom Appleyard, mortgage consultant at The Mortgage Company, rates are as low as 1.84% fixed for two years for borrowers with a 10% deposit or as low as 2.31% fixed for 5 years with a 10% deposit.
Lowest rates out there with bigger deposits:
2 year fixed – 1.44%
5 year fixed – 1.83%
10 year fixed – 2.39%
If you are concerned about your current mortgage or if you are looking to secure an offer, there has never been a better time. Get in touch with our mortgage consultant Tom Appleyard for an expert discussion of the options that are available to you.
