Those concerned about the risk of repossession and coming towards the end of a mortgage deal are left in the dark about what the best option is, an ex…
Those concerned about the risk of repossession and coming towards the end of a mortgage deal are left in the dark about what the best option is, an expert has noted.
Finance expert and founder of the Moneymagpie.com website Jasmine Birtles said she has frequently been asked to advise on whether a fixed or tracker rate mortgage is the best bet.
She said this happens a lot because "nobody knows what interest rates are going to do."
Discussing how she has thought about the situation, Ms Birtles stated: "I've been saying for a while that I don't think interest rates will go up until the summer, or possibly at the end of the year."
However, she noted, this was before the rate of inflation increased recently.
Nonetheless, the expert argued, the rate of inflation should not prompt a rise in the base rate because the problem is caused by international factors the UK base rate cannot influence.
Those who are facing a choice of what to do about their mortgage may wish to pay close attention to the latest Bank of England Monetary Policy Committee (MPC) meeting minutes, which are out this Wednesday (April 20th).
While it is known the majority voted to keep rates at 0.5 per cent, it may be a fourth member has joined calls for a rate hike and the general sentiment of the committee could also be gauged from the document.
Those who may run into trouble with their mortgage when rates do go up might include those who have underestimated the impact of this on their monthly repayments.
A recent Unbiased.co.uk survey has found 3.5 million people do not know what the impact will be when the MPC finally does make a change to policy.
By Joe White