What the Interest Rate Rise Means to Home Owners and Buyers?
Thu 2 Nov 2017
The Bank of England has raised the interest rate for the first time in ten years.
Cast your mind back to 2007 and Rhianna topped the charts with her Umbrella song, Cristiano Ronaldo led Manchester United to Premier league glory and the first generation of iPhones was only three months old.
But what will the base rate rise from 0.25 to 0.50 mean for home owners, first time buyers and investors?
Any homeowner on a variable-rate mortgage will experience an immediate dent in the pocket. Perhaps not a big one, but an increase in your monthly outgoings nonetheless.
Although according to Bank of England statistics that’s only around one in ten households on a variable mortgage in the UK, compared to almost 20% of the home owning population a decade ago.
That’s partly because more people have fixed rate mortgages today.
It also reflects the generational gap – older people have paid off their mortgages and own their homes outright, while many young adults have been unable to get a foot onto the housing ladder at all.
It’s also worth remembering we are experiencing historically low interest rates and at Seths we’re not expecting the rise to have any effect on the local housing market which remains buoyant.
But now does look like being a very good time to look at your current mortgage arrangement and see if there is a better deal available out there for you.
At Seths we’ve seen the rise of the fixed rate mortgage with some lenders offering up to ten-year fixed rate deals.
While this isn’t in any way financial advice there is myriad of mortgage deals available.
We work closely with local independent mortgage advisers who would be delighted to have a complimentary, no obligation chat about your situation.
Contact us on 0116 266 9977 or send an email to firstname.lastname@example.org and we’ll put you in touch with them.
Thanks for reading and if you have any property related questions whatsoever please do not hesitate to contact us.
The team at Seths