With rates of interest standing at a record low of .5% for a long time, should all who may have mortgages stay sitting content and enjoying the benefits to such small mortgage payments (disregard this last sentence if you have a fixed rate home loan!). Well, yes and no. It all depends on your current situation but let's talk some more about the current economy.


Inflation recently attained 3.80%, which is significantly greater than the government would certainly like to see. All in all it appears like this extented phase of low interest rates are coming to an conclusion and this point of view is supported by the Council of Mortgage Lenders.

Will the record interest rates continue to be so low much longer?. The Council of Mortgage Lenders have lately reported that mortgage loan lending has decreased to the lowest degree for nine years. The actual price of obtaining a home loan has increased recently in spite of low interest rates and this has put off interest in buyers.


If you, like many other people, are barely surviving on minimal interest rates. Go and investigate exactly what fixed rates you would be eligible for. Best practise would be to go and talk to a broker, the loan to value of your mortgage loan will determine exactly what fixed rate you would be eligible for. It is always best to understand what choices are obtainable to you. If the notion of shifting to a fixed rate results in despair, please keep in mind the fact that fixed interest rates were around 5-6% not so long ago!

Presently there may possibly not be too much to worry about as sources have proclaimed that any increase ought to be capped at 1.0% for the forseeable future nevertheless, that is still likely to result in a rise in mortgage loan repossessions and arrears. The simple fact that a rise by 0.50% would result in an increase in arrears is a worrying notion indeed.



And so for those of you who will happy to continue to be on a variable rate. Well, you will certainly be the small proportion who can happily afford a rise in interest rates. Whichever situation you are in, it's definately time to start planning!

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