Why now is the perfect time to consider a new mortgage package?

Bank of England hinting that interest rates could be raised from record lows sooner, rather than later

“Will they, won’t they?” That is the question that observers have been asking on and off for months about the Bank of England. What they want to know is whether and when the Bank will raise its base rate from the record low level of 0.25% - a decision which would have a major impact on millions of mortgage holders.

The latest hint from Mark Carney, Governor of the Bank of England, seemed to suggest that a hike was coming sooner, rather than later. Market indicators suggest that a doubling to 0.50 % could come as soon as November.

We have been here several times before with apparently ‘hawkish’ comments from the Bank hinting at a hike to come, and then they stay the same.

But surely this time we are moving closer to an actual increase. After all rates have been at historically low levels for ten years now and inflation remains stubbornly above the Bank of England’s set target of 2%.

If you are mortgage holder or looking for a new mortgage it must make good sense to try to lock in the current low interest rates by getting a fixed rate mortgage for 2, 5 or more years if possible. A few of these deals have been withdrawn recently but there are still plenty of attractive offers available.

Stephen Ludlow, Chairman of ludlowthompson, comments: “I know it’s the question on every homeowner’s mind, but you can be pretty certain of one thing – they are not likely to fall!”

“So now is a good time to find the right fixed rate deal at a low rate, before most of them are withdrawn from the market which will happen quickly once the mood really changes.”    

For those individuals interested in talking about getting a new mortgage please contact Chris Lockey at Jigsaw Mortgages here.