Published: 09/11/2021Recent media coverage has suggested the age of the rock bottom bank of England base rate may be coming to an end with an increase in the base rate likely to be seen as soon as the next MPC meeting. Improved economic indicators after the emergency Covid 19 measures may bring forward a higher base rate environment quicker than we first thought.
So, what does this mean to the typical property owner? Well, it suggests it would be prudent to act now if you can or at least understand your options but don’t panic if you can’t!
Anyone who has a Residential or BTL mortgage product coming to end before Summer 2022 should be speaking to us immediately, as we are seeing mortgage rates going up across the market. And as many lenders allow you to reserve a mortgage rate now, even if you can’t use it for many months to come it is worth exploring your options.
Remember BOE base rate doesn’t need to actually move for banks to pull many of the products available to clients. The market moves on confidence and on predictions based on what may happen just as much as what is actually happening.
If you can’t act now, we do not anticipate that rates are set to rocket, rather a more measured increase over the coming months. In which case, just let us know when your product expires, and we can diarise a review nearer the time whilst keeping you up to date with market sentiment and movements in the meantime.
New Year always proves a very popular time for clients to get their house in order, I suggest this year Nov/Dec are more prudent month for all concerned!
For more info please call us….