With inflation remaining at 3% in January, and a slight dip in February, economists are predicting a further rise in interest rates in May this year.
Although they don’t believe it will be a large jump, a 0.25% increase on a mortgage can still make a significant difference when it comes to meeting your monthly repayments.
According to a recent Reuters Poll, it is thought that 32 out of 578 economists have tipped an interest rate rise in May. This comes alongside comments made by Gertjan Vlieghe, who is a member of the Monetary Policy Committee, those responsible for setting the rates, stated that an increase in wages as well as household debt meant that the economy was ready for higher interest rates.
The Bank of England have stated that due to a strong economy it is highly likely that interest rates will rise certainly by the winter.
It may be the case that the general public have this in mind as there has been a higher number of applications being made for both new mortgages and re-mortgages.
If you’re currently on your mortgage lenders standard variable rate, then it would mean that should there be a further rise in interest rates, it is highly likely that the mortgage provider would pass this onto you. In turn you would see your mortgage monthly outgoings increase.
Alternatively, if you’re looking for a new mortgage deal that could save you money over the long term then it really is the time to speak to your financial adviser. Why not give us a call today on 03333 44 85 11 or email enquiries@onlinemortgagecalculators.co.uk and we’ll be in touch as soon as we can.