Interest rates may rise at the end of this year!
An announcement from the Bank of England Governor Mark Carney has suggested that interest rates could rise by the ‘turn of the year’ making it even harder for people to get onto the housing ladder.
In his speech he said that he expected rates to rise over the next three years, reaching “about half as high as historical averages“, or about 2%, but shocks to the economy could change the timing and the size of any rate rise.
This would mean that cheap mortgages in the UK could soon be on their way out.
Mark Carney went on to say: ‘Short-term interest rates have averaged around 4.5% since around the Bank’s inception three centuries ago. It would not seem unreasonable to me to expect that once normalisation begins, interest rate increases would proceed slowly and rise to a level in the medium term that is perhaps about half as high as historic averages. In my view, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year.‘
Mark Carney has been labelled by the Financial Times as one of the world’s most leading financial figures.
Home owners have already started rushing to remortgage onto the record low fixed rates and if you haven’t had yours reviewed in a while then now is definitely the time while rates are still so low!
CLICK HERE to visit my very own price comparison page and find out if you could save big money by remortgaging.