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
The government has announced plans to make buying or selling a home cheaper and quicker with what is being called the “biggest shake-up to the homebuying system in this country’s history.”
More borrowers using equity release
21 days ago
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
23 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
28 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
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
29 Aug 2025
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 information
Trusted by
