Interest Rates Set to Rise for First Time in a Decade
The Bank of England has made it clear for weeks that a rate rise is coming. This will be the first of its kind in more than a decade. Interest rates have been quite favourably going down for years and now it has been determined that inflation must be curbed. It reached an unacceptable level of 3% during the month of September. This is a five and a half year high and must be controlled through a hike in the country’s base interest rate.
Interest rates are the main component of many transactions involving borrowing and the game is close to seeing a change. Those seeking lending for housing or personal matters will instantly see rates change the moment the base rate is hiked, if not before. Many lenders have already chosen to increase interest rates well ahead of the official declaration made by the Bank of England.
Homeowners thinking about a remortgage must move quickly, according to those close to the housing market. Interest rates are increasing and that means lending is changing. Lenders of all sizes will soon be raising rates to be in line with the actions of the Bank of England. Borrowers will see new rates being advertised with deals if they have not already.
This will be the first rate rise in more than a decade and many borrowers with SVR products are now switching to fixed rate products. There is still time according to housing specialists, but not much. Obtaining a remortgage is now easier than ever and can be completed entirely online.