Independent Financial Life Planners Bishop's Stortford: What if interest rates were 5%?

Wednesday, 2 July 2014

What if interest rates were 5%?

Just last week the outgoing Bank of England deputy governor Sir Charlie Bean said that interest rates could return to 5 per cent “within the longer term” when he was being interviewed on Sky News. He suggested interest rates could rise towards the 5 per cent mark, which traditionally was considered “neutral”.: “I would not want to say it will be back there in ten years, but it might be reasonable to think that, in that very long term, you would go back to 5 per cent, but it is probably quite a long way down the road.” Previously Bank governor Mark Carney had told the BBC that 2.5 per cent is likely to become the “new normal” level for base rate by 2017; a forecast Bean says is “sensible.”

One way of making sure you know what you will be paying for your mortgage is by using a Fixed rate mortgages as the name suggests, a fixed rate mortgage has an interest rate that is fixed for an initial term - say 2, 5 or even 10 years. This means your monthly mortgage payment will remain the same over the period, giving you certainty and allowing you to budget for a major item of expenditure. At the end of the fixed rate period, the mortgage usually transfers to the lender's variable rate - although it makes sense to shop around at this point to secure the best deal.

Enables IFA’s are here to help you look at the best mortgage options available to suit your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

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