Monday, December 11th, 2017
As widely mooted, the Bank of England increased the base rate by 0.25% in November; the first increase for 10 years. Whilst the Governor Mark Carney intimated that it will not be the last of the rises, we do not expect the base rate will rise above 1% before the end of 2020.
Although some mortgage lenders are likely to apply the rate increase to their product range gradually (as they digest the longer-term forecasts), such changes tend to create uncertainty amongst borrowers regarding the future of mortgage rates. This will no doubt have prompted some with variable or base rate tracker mortgage products to seek out mortgage advice regarding their own arrangements.
We believe that a significant number of mortgage borrowers are on a rate which will or could be influenced by the base rate change (and of course any future changes), so it would be no surprise to see a significant spike in products which are fixed for maybe 5 or 10 years as clients seek to protect against the possibility of further rate rises.
Whilst it remains to be seen whether a surge in borrowers seeking mortgage advice will materialise, (some may choose to absorb this increase and review arrangements later), for those who do want to review their existing arrangements, for many, the first port of call may be their existing mortgage broker or even one picked at random from the local high street.
However, as some brokers may be unable to access some of the more specialised products that exist, it may be more appropriate to seek out an experienced mortgage broker that has access to a more comprehensive panel of mortgage lenders.
And that is where our experts on mortgage advice team here at Caboodle Finance of Sutton Coldfield, Birmingham may be able to help.
Whether you are considering moving to a new house or just thinking of taking a first step into the world of property, call us today on 0121 308 9114 or alternatively complete our enquiry form by clicking HERE and we will be delighted to hear from you.
Caboodle Financial Services Ltd
240B Lichfield Road
Sutton Coldfield B74 2UD
Telephone: 0121 308 9114