Interest. Just the sight of those eight little letters makes the majority of homeowners quake. That’s become even more the case since Brexit negotiations began, and it only looks set to get worse as a no-deal exit looms. But, news from the Bank of England’s Monetary Policy Committee (MPC) has brought at least some respite for homeowners as committee members vote to keep UK interest rates on hold at 0.75% this June.
This is in light of an increasingly flat financial climate, but it’s little reassurance for most, with Michael Saunders from the MPC claiming that they’ve already raised rates twice since the Brexit vote and
“We will act again if needed to ensure a sustained return of inflation to target over time.”
How homeowners can deal with an uncertain future
Given that there’s no telling how long this hold or Brexit negotiations will last, the homeowner landscape is still uncertain. As such, preparation is the only real course of action right now. While it’s impossible to tell which way interest rates will move, advice for securing investments largely points towards fixed rate mortgages with the longest terms and best rates.
There are now various five-year fixed rates available at well below 2% which are undeniably the best bet for securing mortgage payments over this uncertain period. With a little hope, the future of interest will be much clearer by the time that five year period comes to an end, allowing homeowners to find themselves on stable footing once more.