Amy Kadir, Mortgage Advisor, St Albans reviews fixed rate mortgages
The biggest influence on the mortgage rate is the base rate of interest set by the Bank of England. Since August 2016 the Bank of England base rate has been set at 0.25%. It was cut in response to the vote to leave the European Union after several years of being as low as 0.5%. However, minutes of the Bank of England monetary policy committee meeting released in March 2017 show a split on how to tackle inflation as the committee voted 8-1 in favour of holding interest rates at 0.25%. In America following Trump’s election in November swap rates (the price at which banks buy and sell money between each other) rose and this affected mortgage rates, as they started to increase slightly.
Amy kadir, mortgage advisor St Albans and member of the St Albans mortgage broking team said:
‘There are many more 10 year fixed rate deals available in the marketplace now as people look to fix their mortgage and get the security of knowing how much they will repay each month. However, we’re beginning to see the price of some fixed rate deals increase. We always recommend that anyone looking to take out a mortgage chooses the right type of mortgage for their lifestyle. Fixed rate mortgages are very popular with clients who are looking to re-mortgage because when you fix you have the satisfaction of knowing how much your mortgage will cost. However, do take into consideration that the fees to set up these products can be high and once the fixed rate ends you could be paying your lenders standard variable rate. It is also very difficult to get out of a fixed rate mortgage so it might not be suitable for you if you think your circumstances could change during the fixed term of your mortgage.
If you would like mortgage advice and want to review the advantages and disadvantages of fixing your mortgage in the current market please contact me on 01727 845500. We do not take a charge from you for our mortgage advice as we receive commission from the lender when your mortgage is approved.'
‘As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments’