I heard from a reliable source today (ok, hubby. I heard it from my husband who reads the news whilst I don’t) that mortgage interest rates are on the rise. My first thought was “it’s about bl**dy time” and my second “couldn’t they have waited just a little longer“.
The rates have to rise, we all know it although it does not bode well for all those newer homeowners who have borrowed the maximum amount over the longest term with the shortest fix. Seriously, they come into the office with their Help to Buy ISA’s and buy four bed houses worth +£250,000 as their first homes!
We’re currently two years into a five year fix at 2.59% so realistically the ERC* is large enough that it makes getting out of the fix undesirable although with the low rates currently available for long periods I reckon they could save us money long term.
Hey ho, interest rises are good for savings right?
*Early Repayment Charge