Mortgage mayhem… time for advice
As of 6th October, we have seen multiple lenders fall below 5 % interest charged on some fixed rate residential mortgages, with a rate war appearing to break out between the lenders and further announcements being made every day.
The consequence is the difficult consideration for client[JP1] s to decide whether they fix now or try and hold out whilst rates continue to fall.
This month the base rate held for the first time after 14 consecutive months of increases, which has been a catalyst for rates falling. This gives cause for optimism of falling interest rates and inflation, which in turn should lead to mortgage rates falling further.
It is not unrealistic to consider the base rate not falling as sharply as desired, or indeed having to hold further for a while as the Government continue to attempt to lower inflation, but as long as the overall trajectory of rates is downward, the consequences should be positive.
Conversely bank account interest rates should act in the same vein, meaning that fixing some surplus cash is again worthwhile discussing with one of our advisers before rates start to fall.
As always, it’s important to seek advice on the best option for you personally. There is no one size fits all approach and understanding the right mortgage deal for you is now more important than ever before.
Matthew Harrison DipPFS
Wealth Management Consultant - Tower House Wealth Management
01522 518759
No Advice
The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.
Information
The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.
Share this article