Interest Rates About to Rise?
Homeowners with mortgages are being urged to prepare for an interest rate rise by this Autumn.
Governor Mark Carney said the Bank of England could raise interest rates from a record low earlier than investors expect as he expressed concern that mounting debt related to the housing market could undermine stability.
“There’s already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced,” the BOE governor said in his debut speech at the Mansion House in London today. “It could happen sooner than markets currently expect.”
So-called accidental landlords who were left unable to sell their properties in the credit crunch and were forced to hold on to them as buy to let investments are perhaps the most vulnerable to an interest rate rise from the Bank of England’s current historic low of 0.5% along with those on interest only mortgages.
An increase in the base rate of just 1% could add hundreds of pounds per month to the average interest only mortgage and would increase payments by one third for somebody currently on an interest only tracker at 2% for example.
SecureASale’s director Tim Jackson explains why now may be the best time to sell quickly.
“We have seen the London housing market reach historic highs in the first half of 2014 buoyed by low interest rates, high net immigration into the capital leading to increased demand and London’s continued status as a ‘safe haven’ world city for those currently living in countries suffering from political or economic turmoil.
“That said, prices are now at the very edge of affordability for first-time buyers and families alike and any rise in interest rates could have a disproportionate effect on house prices as the new reality takes hold that cheap money is coming to an end”
If you need to sell your property quickly, now may well be the best time to guarantee a good price. SecureASale is a member of the Property Ombudsman and a founder member of the National Association of Property Buyers ensuring peace of mind that you are delaing with a well established, industry leading ethical case purchaser.
Call SecureASale today for a free valuation on 020 7117 6660.