Warnings to secure low interest rate mortgages

Mortgage lenders have recently warned home owners to secure a low rate mortgage before interest rates start to increase.

According to lenders, the current low interest rates may not fall any lower, and may start to increase. Currently, home owners can tie in to a two year fixed rate product at 0.99%, or a mortgage fixed for five years at 1.64%. The Council of Mortgage Lenders (CML) has stated that deals may not fall lower than that. The CML has also hinted that the mortgage rates currently on offer may even rise.

The warnings follow on from the recent rate setting meeting by the Bank of England. The Monetary Policy Committee resulted in a five to three vote against increasing interest rates, although it had been expected that just one vote would be in favour of raising interest rates from 0.25% to 0.5%. The chief economist of the Bank, Andy Haldane, said that as the economy was performing well and inflation had risen, it was possible that an increase in interest rates could take place this year.

However, https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Carney, the governor of the Bank of England, has stated that it wasn’t the right time to raise interest rates. The cheaper rates have helped more first time buyers onto the property ladder, although experts say that the number of home movers has fallen.

Mortgage advisors take a CeMAP course so that they have all the facts when providing advice to home owners looking for a low interest rate deal.



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