It appears that Fixed rates could well have bottomed out and may now start going up again. Market rates which control fixed rate pricing have increased last week from 2.96% to 3.15%. This means that it is likely that fixed rates will start going up again over the next week or two.
The increase in market rates is due to a rise in inflation and the government’s failed gilt auction which has left market confidence shaken in these uncertain times.
There are over a million homeowners currently on the standard variable many of whom are waiting for interest rates to drop to their lowest. For fixed rates that could be now. The Bank of England has signaled that it is reluctant to lower rates further than 0.5%. All of these factors point to a bottoming out in rates.
A lot of financial experts are hinting that fixing for 5 years could be a very good idea to ride out the storm.
If you are on the standard variable rate and are thinking about moving to a fixed rate mortgage now would be a good time to start looking. Speak to your adviser or alternatively (if your adviser hasn’t spotted this change in the markets and contacted you accordingly) if you would like a quote from us call us on 0870 080 2343 or complete the mortgage enquiry form. We are FEE FREE mortgage brokers offering whole of market advice.
