Is now the time to fix your mortgage?
Of course, prudent home owners who can afford to overpay their mortgage could sit on the low SVR for a while yet, safe in the knowledge that they are reducing their mortgage over and above the minimum requirement and building up more equity in their home. This will help them secure a better deal when they do decide to move off the lender’s SVR.
Darren Cook, from Moneyfacts, said: “The Bank Rate will not remain at 0.5pc forever. It is always prudent to fix a rate during unsettling times or economic uncertainty, as rates can go up as quickly as we saw them come down.”
There are several reasons why opting for a fixed-rate deal is beginning to look attractive for the first time in a while.
The Prime Minister recently voiced concerns at the level of inflation, hinting that rates would be raised to combat the risk. David Cameron said: “We have seen a slightly worrying increase in inflation in recent months, so interest rates will be set to control inflation.”
