Mortgage Simplicity Ltd is an appointed representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Conduct Authority.
Cooperage Way Business Village Cooperage Way Alloa
FK10 3LP
United Kingdom
Mortgage rates are going up, fix now to save money
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Interest Rates could rise this year, what does it mean for borrowers?

Bank of England Governor Mark Carney has said interest rates could go up sooner than expected.

In a recent speech at the Lord Mayor’s banquet in London last week, Carney told guests that the first rate rise “could happen sooner than the markets currently expect”

With some analyists predicting a 0.5% rate in the Bank of England Base rate in Quarter 4 2014 as a distinct possibility, what will this mean to borrowers.

With 6 out of 10 borrowers on a variable rate that will rise alongside base rate, borrower will need to act fast before lenders increase their fixed rates in anticipation of future base rate rises. UK Asset Resolution believes a 1% rate rise could force 22,000 of it’s customers into repayment arrears.

Below is an example of what a potential rise in the base rate would mean to existing borrowers:

Based on a £200,000 repayment mortgage with 23 years remaining, on a rate of 3% currently would see their payments go from £1004 to £1056 if rates rise by 0.5% and to £1109 if there is a 1% increase.  The advice to home owners and would be borrowers, is to lock in at a rate where they feel they’d be comfortable paying , for as long a period as they can.

For Free impartial Mortgage Advice call us on 0845-838-1502 or email info@mortgagesimplicity.co.uk for a no obligation quote.

 

 

 

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Important

Mortgage Simplicity Ltd is an appointed representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Conduct Authority.

Julian Harris Mortgages Limited FCA Register number is 304155.

UK Financial Services

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

Contact Us

Mortgage Simplicity Ltd
The E-Centre
Cooperage Way Business Village
Cooperage Way
Alloa
FK10 3LP

Tel: 0845 838 1502 / 03330 113157
Email:info@mortgagesimplicity.co.uk