Bank of England holds interest rates
The Bank of England (BoE) has held its base rate at 0.1% despite expectations that there could have been a rise.
Home owners and mortgage intermediaries alike were bracing ourselves for the first hike in the BOE rate since the reduction in early 2020. However, in a surprise turn of events, the BoE’s Monetary Policy Committee (MPC) voted seven to two in favour of keeping the rate where it stood.
Following this news revealed yesterday, 4th November, there is still some uncertainty in the economy and when exactly the rate will be increased. It seems likely that January 2022 will be the time for the first rate increase. It is believed that the base rate will go up to 0.25% with possibly a couple more rate rises in 2022 to take it up to 0.75% this time next year.
This was most definitely welcome news to both prospective and existing borrowers, especially with energy costs increasing, and universal credit payments decreasing.
However, low interest rates can’t last forever! looking ahead, the challenge will be how we can best support the growing number of customers who find themselves in difficult financial situations.
At Advantage FS, we have already seen a cluster of high-street lenders hiking their rates ahead of the rate decision, and this trend is likely to continue. Whilst mortgage lenders try to give notice to mortgage intermediaries, often products and rates are withdrawn with little to no notice. Rates can’t stay at sub-1% forever, so it’s key for borrowers to act first to lock in savings while they last.
Whilst competition between lenders should keep the market competitive, for those worried about the future of their mortgage, along with those simply coming to the end of their existing mortgage term, the key now is to seek professional mortgage advice. Mortgage advisers are on hand to help secure the best possible mortgage for each individuals needs.
For those with complex financial situations, seeking advice is more important than ever, and it should be a priority to act now to ensure you lock into appropriate, affordable products while you can.
If you have concerns about the imminent rise in rates, or just want to discuss your options, please contact us where we can offer you professional and friendly advice.
Tel: 0117 4420604