In response to the strength of economic recovery and increasing house prices, Mark Carney, the Bank of England’s Governor, indicated that interest rates may rise sooner than anticipated, but the “action would be gradual and limited.”
Apparently 2 out of 3 borrowers have variable or tracker rates mortgages, which means a rise in the BOE rate will mean an increase in mortgage payments.
To clarify: anyone on a tracker rate will see an immediate increase, which will be in line with any BOE increase. Increases to borrowers on their lender’s standard variable rate (SVR), are at the lender’s discretion. I am fairly certain that most lenders are absolutely gaging to put their SVRs up, if for no other reason than to be able to increase their saver rates.
It’s defiantly time to start looking at fixed rates if you are still on the SVR, depending on how much equity you have in your home, you can pick a 2 year rate up under 2.5%.
The prospect of an increase has not put off first time buyers - in quarter one of 2014, there were 34% more first-time buyer loans compared to the first quarter of 2013. Home-mover loans were 11% higher for the same period.
Apparently some industry insiders have been calling for a rate rise before the end of the year. Not me!! Tracy (tracker) Gordon.
For more information or to speak to a mortgage advisor contact us on 01628 507477.
Recent posts
Autumn Budget 2025 Predictions: Mortgage Market
13 days ago
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
16 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
6 Aug 2025
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
