"Up" seems to be the operative word this week unfortunately!
We've seen most major lenders bump their medium term (2 and 3 year) fixed rates up by about .10%. Why this is and what you can do about it are explained below.This is entirely unexpected to most consumers as the media keeps reporting future OCR drops and the housing boom but in reality there are definitely some strong factors at play in pushing the cost of this pricing up. The three major reasons being quoted by the banks are:
Lack of deposit funds
Changes in regulation
So will rates drop?
What should you do?
As always the right option really depends on your personal situation but I definitely think that everyone needs to consider how a rate rise would effect their budget and make a plan accordingly.
That's where we can help. We'll work through a budget and a plan for your future and suggest how the right balance of fixed rates can ensure you achieve your financial goals.
Of course we'll then negotiate the best interest rates and take care of fixing your home loan with your own bank or finding a better deal free of charge.
So if you'd like to discuss your future interest rates or a fixed rate expiring soon get in touch with the team.Adam, Claire and The My Mortgage Team