Secure a fixed mortgage today – The reasons why

We are being advised that the chance to lock into an ultra-cheap mortgage is set to disappear, and there are a number of factors that point to rising rates.

According to the Bank of England data shows that cheap 2 year fixed deals have already increased from 1.31 in November last year, and by the end of February 2017 the average stood at 1.35.

The Office for Budget Responsibility has announced that inflation will rise to 2.7pc  which is above the Bank of England’s official 2pc. It was in December 2013 that we last saw inflation hit 2pc. The combination of prices of insurances and oils rising and the declining pound, will force prices to rise throughout 2017. With the cost of living rising the Bank of England will be put under pressure. This will  have a knock on effect to the rise in Variable mortgage rates and if you haven’t fixed by then, will only higher rate fixed mortgages as an option.  Future incomes and living costs are out of our control. One element we can make predictable is by Fixing our mortgage costs.

With the uncertainty in Europe surrounding Brexit, this could have an impact on Britain and interest rates which could also affect our economic growth.

You can read the full article published in Telegraph

Image Credit: Tierra Mallorca  on Unsplash

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