With rates having been so low for so long, it’s easy to fall into the trap that rates are going to be low for the foreseeable future however, economists are predicting that the period for cheap mortgage rates is about to come to an end.
Mortgage Brokers SPF Private Clients have seen evidence that two year swap rates have seen a dip since after the Bank of England’s Base Rate failed to increase in early April.
Put simply, a swap rate indicates the expectation that a bank is able to lend and borrow in a particular time period. Although there are other factors that are considered, a fall in the swap rates will generally lead to a fall in the interest rates charged to customers.
The swap rates look similar over a 5 year period but these swaps will continue to move both up and down whilst an attempt to predict future interest rates continues.
Economists are predicting that rates won’t get any cheaper but that it is worth considering both fixed interest rate mortgage deals as well as variable rate mortgage deals.
Why not chat to an adviser today and find out which mortgage deal is right for your circumstances? You can speak to an adviser on 03333 44 85 11 or you can email enquiries@onlinemortgagecalculators.co.uk