Is it too soon to look at fixed-rate mortgages?
As talk about the threat of inflation continues to grow there are some analysts who are concerned that UK base rates could move higher in the short to medium term. However, the vast majority of analysts believe that the threat to the UK economy will not come from inflation but will indeed come from a potential double dip recession. However, it is vital that those with mortgages who are considering remortgaging, possibly looking at fixed-rate mortgages, continue to monitor the market very closely and take professional advice where applicable.
While UK base rates have remained at 0.5% for some time it is likely they will move higher fairly quickly once the economy is on a firmer footing and inflation is under control. Rates cannot remain at 0.5% indefinitely although when they may change is something which every analyst has a different opinion upon. Those who are looking towards fixed-rate mortgages need to be aware that the market could move very quickly once it starts to change and keep abreast of the best offers and the best deals available as they may not last forever.
Once the mortgage industry gets wind of a potential increase in UK base rates it is likely to react with indecent haste and it may then be too late to grab one of the more attractive fixed rate mortgages. The truth is that every option available in the mortgage market carries a risk at the moment and you need to consider your own circumstances and what may or may not happen in the future.
Share this..
Related stories
Net mortgage lending set to slip below zero in 2009
A confidential Treasury report has highlighted the potential that net mortgage lending is set to fall below zero in 2009. In simple terms this means that the UK consumer would have paid back more in mortgage payments than they receive in mortgage funding. This would be the first time this situation has occurred during a full calendar year and may mark the time when the UK housing sector changed fo...
Read MoreHouse prices rise again, according to ONS
13/08/2013 The Office for National Statistics (ONS) has again reported a house price rise in the UK, as Government schemes continue to strengthen the property market. This is backed up by the Royal Institute of Chartered Surveyors (Rics), which has said that prices are now rising at the fastest rate since their peak in 2006. Average house prices rose by 0.4pc in June compared to the pre...
Read MoreYour Mortgage and Divorce
Getting divorced is a situation with a lot of unknowns for those involved, and if a house is under joint ownership there can be complications over who gets what, and who is left with the responsibility of the repayments.
Complications surrounding your share of the property, and what you are likely to get in a settlement is not something that we would deal with, as this is a legal issue....
Read MoreSelf cert mortgages 'not just for self employed'
The number of people taking out self certification mortgages is rapidly picking up speed, according to a leading mortgage expert.The Intermediary Mortgage Lenders' Association (IMLA) attributed the increased popularity to the fact that more people now do freelance work or have several jobs. Anyone taking out a self certification mortgage does not have to provide proof of their income such as wage...
Read MoreMortgage cap could ruin the UK property market
It is believed that the UK government is on the verge of passing significant power to the Bank of England in relation to the UK mortgage market which could see potentially four out of every 10 mortgage applications rejected. Central to this issue is a proposed mortgage cap which could see the introduction of a requirement to put down a minimum 25% deposit on any house purchase. It has yet to be...
Read More