BANK OF ENGLAND WARNS OF POTENTIAL INTEREST RATE RISE
IN THE SAME WEEK AS ONE LENDER LAUNCHED THE CHEAPEST-EVER 80 PER CENT LOAN-TO-VALUE (LTV) TWO-YEAR FIX, THE BANK OF ENGLAND HINTED THAT AN INTEREST RATE RISE MAY BE IMMINENT.
While the Monetary Policy Committee voted to keep interest rates steady at 0.25 per cent at the last meeting, it also hinted that a rise could be on the cards ‘in the coming months’. HSBC expects the Bank to raise rates in November and again in May, while Barclays is also forecasting the first rate rise in years in November.
Meanwhile, one lender has launched a sub-1 per cent two-year fixed rate – pegged at 0.99 per cent with a £1,495 fee and free valuation. This is available for those with a 20 per cent deposit, so not just those with the biggest deposits can benefit from this ultra-low rate.
Lenders are still keen to lend and we are unlikely to have seen the back of the most attractive deals. That said, Swap rates have risen considerably over the past week on the back of the Bank’s hints about a possible rate rise. While mortgage pricing is still competitive, borrowers might want to think about taking action and securing a good fixed-rate deal now if they need some security in the future.
Do get in touch for advice about your particular situation.