The bank of england increase interest rate to 1.75% in August in an effort to combat the surge inflation. As a result, borrowing is more expensive and saving is more rewarding, meaning Brits are encouraged to get a fixed rate. mortgage.
Samuel Mather-Holgate of Swindon-based consultancy Mather & Murray Financial said: ‘If you have a mortgage or are looking to borrow money, my advice would be to lock in your rate now.
“If you prefer certainty, lock in for a long time as interest rates are still historically low, despite rising.”
However, fixed-rate mortgage holders could end up paying longer if inflation and interest rates drop.
He continued: “A word of caution though; when inflation returns to normal levels, six months from now, and the recession is in full swing, the Bank of England will be forced to cut interest rates. We don’t know how much yet.”
Monthly remortgage data from LMS for June showed that some 67% of Britons who remortgage took out a five-year fixed rate product.
Meanwhile, 30% have remortgaged to reduce their monthly payments.
LMS CEO Nick Chadbourne said: “More consumers may be looking to longer term fixed rate products to improve financial security and manage cost of living challenges.
“As this crisis intensifies further and fears of a recession increase, this trend is expected to continue and the industry will face increased demand.”
So and YOU? Are you trying to remortgage early for fear of soaring interest rates? Vote in our poll and leave your thoughts in the comments section below.
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