Don’t Panic About Rising Interest Rates, Says Swindon Mortgage Professionals

A SWindon-based INDEPENDENT mortgage advisor urges homeowners not to panic over the rising base interest rate.

Last month, the Bank of England raised interest rates from 0.1 to 0.25% (a rise of 0.15%), the first such hike in three years – and it there was talk of further increases to come.

TED Mortgages Director Tom Brennan said, “This is still the second lowest base rate we’ve ever had. With Omicron, the lingering possibility of another foreclosure and inflation so high, raising the base rate even further will only cause more unnecessary financial strain on households.

“A knee-jerk reaction for the sake of raising the base rate by 0.15% is not necessarily the right thing to do. We only have to go back to March 2020, when the base rate was 0.75% and the rates available by mortgage lenders were not that much different from what is available now. ”

Her business partner Chris Blackwell agreed and suggested that homeowners with a standard variable rate should review their mortgage anyway to make sure they have the best deal, which can be done without moving.

Mr Blackwell said: “Anyone with a standard variable rate should look into this and seek professional advice rather than panicking and resolving a deal that might not be right.”

They saw new trends occur during the pandemic, such as more people making improvements to their homes, first-time buyers taking the plunge as many banks now offer 95% mortgages, flexible working allowing people who have moved from their hometown to work to return, or people climbing the property ladder to have more space to create an indoor or outdoor office.

Tom added: “We expect that in 2022 the real estate market will remain incredibly active. The desire to move is higher than it has ever been, and house price levels are expected to hold or rise slightly according to major banks on the street.

“We expect people to take the incredibly low interest rates available and use them to finance their aspirations, whether it’s moving, saving money, or improving the properties they want. already have.

“We hope to see more support for first-time buyers with improved affordability assessments and bespoke products from lenders helping first-time buyers have a better chance of climbing the ladder.”

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