Independent Financial Life Planners Bishop's Stortford: Rate rises in 2016?

Sunday, 17 January 2016

Rate rises in 2016?

Enables IFAs in Bishops Stortford know that for a range of financial decisions, particularly mortgages, the direction of travel for the Bank of England base Rate is vital. Having sat at 0.5pc for more than six years it seems as if change could happen anytime but according to the markets the rate looks set to remain fixed well into 2017, maybe even longer. Despite the US central Bank the Federal Reserve having raised their rate for the first time in nearly a decade.

Money markets suggest the first rises might not be seen until December 2016 or January 2017 and the shift in these kinds of predictions have probably been based on various events that took place last year; the Black Monday stock market crash in August, which undermined confidence; the repeated delays in widely expected rises in rates in the US; the worse than hoped for UK economic growth and the return of UK deflation in September.

So what should you do about your mortgage? As the cost of fixed rate mortgages remain historically low compared with "trackers," especially if you have taken out a longer-term loan it may seem like a fairly simple choice to protect your mortgage rate rises with a fixed rate. Indeed some 90% of those buying and remortgaging are buying fixed rates say Industry figures. But the price of fixed rate mortgages could be about to rise. This is because "swap rates" - the rates at which lenders "buy" money for fixed periods on money markets rose sharply in early December. It might mean that some of best fixed rates on the market could start to be withdrawn. Enable’s IFAs in Bishops Stortford can talk though your mortgage options with you.

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

Source: The Telegraph

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

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