Published: 02/10/2015With Interest Rates remaining at an historical low of 0.5 % for the past few years, most Economists are predicting an upward move some time in 2016… but what homeowners would love to know, is by how much, and when?
Although there are no cast iron facts available, forecasts released this week by the Centre for Economics and Business Research suggest that the Bank of England won't raise interest rates until the middle of next year at the earliest, despite previous forecasts predicting a February rate rise.
The Centre expects the UK economy to grow by 2.5% this year, however, growth is expected to slow to 2.0% in 2016 and then average just 1.7% over the years 2017-2020. In contrast, the Office for Budget Responsibility expects growth to remain above 2% over this period.
The global economic slowdown, driven by substantial weakness in emerging markets (most notably China), is holding back export prospects and curbing business investment. If the world economy continues to falter, then these weights on growth will become even bigger.
Alex Maile, Managing Director of Lawson Rutter, said of this week’s news: “This research provides the prospect of on-going low interest rates for some many months to come which can be only good for homeowners. It also gives continuing reassurance and confidence to those people about to embark on their property purchase”
Despite this positive short term forecast, many home-owners whose current deals are about to expire, or are doing so in the next few months, are protecting themselves by taking advantage of some very good fixed-rate deals that are currently available, and with some lenders also reducing their loan-to-value demands, the lending market is very competitive right now.
To talk to one of our Independent Mortgage Advisors about securing one of these deals, please call Simon Moloney at Ashton Gate Financial on 020 7736 7788.