Recently we saw the first back to back base rate increase since 2004, which shows that we are still in a time of great and unexpected change as a result of the Covid-19 pandemic.
We anticipate a lot more people wanting to remortgage following this announcement, requesting their fixed rate be looked at before rates potentially rise again, and securing a brand new fixed rate if their remortgage is coming up.
I’ve already had a number of enquiries from clients of mine who are not due to remortgage for 2-3 years asking me to price up their options now. There is a lot of fear, but I do think the future rate increase predictions are accurate.
Four members actually voted for an even bigger base rate increase to 0.75, which shows us that further increases are expected. Experts are being quoted as saying the base rate will be 1.25% by the end of the year, which will have a huge impact on the cost of borrowing.
On some level, we can see why they’re doing it. Demand is still incredibly high in the property market, and inflation is double what they expected it to be. By increasing the cost of borrowing they are hoping to bring this down.
Lots of our clients on variable and tracker rate mortgages will be getting calls to encourage them to look at a fixed rate, and we predict a rise in the highly anticipated 10 year fixed rate mortgages. People just want to feel security in one area of their life, and with so much uncertainty in the world, it’s no wonder a 10 year fixed rate seems appealing. It’s one thing less for them to worry about!
If you have any concerns or wish to discuss your options moving forward, we’re on hand to answer any questions you may have, so don’t hesitate if you’d like to get in touch.
If you’d like to discuss the options available to you, contact us today.