“Life is ten percent what happens to you and ninety percent how you respond to it”
Lou Holtz
House prices rise for the fourteenth successive month
If you own a property in Brighton and Hove then you are likely to have seen the value of your home increase by around 13% in the last year. In fact, house prices are now rising at pre-recession levels, with the South-East seeing the strongest rates of growth.
Will the Bank of England try and cool the market?
Rising house prices, a growing economy and low interest rates (they have been at a historic low of 0.5% for 5 years) usually mean one thing: rising interest rates. Although it’s become normal for many of us to take out mortgages on very low interest rates it is unsustainable in the long term. Why? Because a low interest rate offers little incentive to save and a large incentive to borrow which results in economic instability and high inflation (in brief: too much money chasing too few goods). The sharp recovery of the housing market will probably mean that the Monetary Policy Committee will favour an interest rate rise. Many are predicting rates to begin rising in Quarter 1 of 2015.
So that’s what’s happening – how should I respond to it?
Now is the perfect time to consider a re-mortgage. As rumours of rate hikes continue apace, lenders may get nervous and they could start to withdraw some of their more favourable 5 year fixed rates. Re-mortgaging isn’t as time consuming or expensive as people think, and it could end up saving you significant amounts of money in the long term. No-one can predict exactly what is going to happen, but fixing your mortgage at a time when interest rates could be about to rise would be very satisfying indeed!
Don’t know where to start with a re-mortgage? We do that for you.
It’s our job to seek out the best rates and terms available to you and offer you unbiased and impartial advice. Contact us now on 01273 736536 or by emailing info@numberonemortgages.co.uk and let’s try and stay one step ahead of the game.