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🙋‍♀ How an INTEREST RATE RISE in the coming months could IMPACT YOUR MORTGAGE 💰

What is current interest rate, and will it rise any time soon? 

➡ Interest rates will remain at 0.1% this month, remaining historically low since the start of the pandemic đŸ”»
➡ The next decision takes place on 16th December, meaning a rise could still happen before Christmas 🎄

What is the Bank of England base rate?

➡ Set by the Bank of England (BoE), the base rate is a benchmark for the cost of borrowing money đŸ’·
➡ It is important to homeowners because mortgage lenders base the rates they charge on it 💳
➡ If the base rate rises, so will the cost of borrowing 📈

Why is rising inflation an issue?

➡ Currently, inflation is just over 3% per year - so if you paid £100 for an item 12 months ago, it would be £103 today 💰
➡ The BoE has a target of reducing inflation to 2%, and one of the key ways to achieve this is by increasing interest rates đŸ’č

How will increasing interest rates affect my mortgage?

➡ If you have a fixed-rate deal – there will be no change to your monthly payments (around 80% of homeowners) 👍
➡ If variable or tracker mortgage, your monthly outgoings will almost certainly go up 😭

Has all the speculation about interest rate increases started to have
an impact on mortgages already?

➡ Yes 😟
➡ Most high street lenders have already begun increasing their interest rates in anticipation of a rate rise before or after Christmas 🎅
➡ This might sound like terrible news, but it’s important to keep things in perspective - there are still two to five-year deals out there at around the 1% mark 👍
➡ Which is very cheap lending compared to what homeowners were paying a decade or two ago 😊

What can I do about it?

➡ If your fixed mortgage is coming to an end, or you're already on a tracker... shop around to see if you can find a cheaper option with a fixed mortgage 🛒
➡ Speak to a mortgage advisor or contact us for more information! 🔍

For the full article from Rightmove, click here: https://lnkd.in/dm_tWNMH đŸ“©

If you would like more information on mortgages, we have THE BEST EXPERTS ready to offer you THE BEST ADVICE đŸŠč‍â™€ïžđŸŠž‍♂

☎📧🗹

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🙋‍♀ How an INTEREST RATE RISE in the coming months could IMPACT YOUR MORTGAGE 💰 By Cavendish Residential Lettings Agency and Estate Agency in Nottingham

Posted 05 November 2021
by Ali Baylav Managing Director Cavendish Residential

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