Interest Rates Rise Again
May 10th, 2007
What we all need to remember is that movement in interest rates is all part of a normal healthy economy, the quarter percent rise was expected and there is no need to panic.
Those who are in a standard variable rate mortgage or in a fixed rate deal which is coming to an end in the next few months, should act quickly if they want to secure one of the fixed rate products currently on offer. Speak to your adviser or mortgage broker today as it is likely lenders will withdraw current deals within days.
Remember to stay calm and objective when choosing your mortgage. Don’t use the headline rate as a guide to choosing the best fixed rate deal as those offering the cheapest rates are likely to carry the highest fees and think carefully before locking into a product for longer than five years as you won’t benefit if interest rates fall in the future.
Interest rates have risen, however the UK economy is strong and is coupled with low unemployment. Therefore I believe homeowners should prepare themselves in case there are further interest rises this year, but it is unlikely we are going to see rates spiralling out of control.
There will always be winners and losers as interest rates change and savers have long awaited news of a rise. Several years of poor returns has caused investments to suffer, so it is all swings and roundabouts.
Author: Philippa Gee
May 10th, 2007
Category: Investments, Mortgages.
