Telephone: 0370 900 94 94 / 0161 237 7540

Email: [email protected]

Interest Rate Commentary

Before selecting a mortgage product it is worthwhile looking at likely interest rate trends:  The Bank of England has warned the UK is facing the longest recession since records began as it raised Base rate from 2.25% to 3%, the biggest jump since 1989, in an attempt to control rapidly rising prices.  Economists are split on how high they feel base rate will go.  The ‘doves’ feel any more than 4% will harm the economy whilst the ‘hawks’ feel that 6% will be needed to tame inflation.

It is difficult to be definitive when recommending which of today’s products offer best value.  Product pricing rose rapidly in the aftermath of the mini-budget but now appears to have settled.  Tracker products still offer reasonable value and excellent flexibility, especially if bank base rate peaks at the lower end of expectations.  Fixed rates are at their highest level for over a decade and will hopefully edge down a little over the coming weeks.  Those with surplus capital should consider the tax advantages of an offset arrangement.

© Copyright Professional Mortgage Services. The information contained herein may be based on data obtained from recognised statistical sources, issuer reports or communications, or other sources believed to be reliable. However, such information has not been verified and we do not make any representations as to its accuracy or completeness. Any statements non-factual in nature constitute only current opinions which are subject to change, without notice. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.