The editor of BBC News Business, Robert Peston, recently published a Blog article called 'Rate Shock!'
In his blog, Robert points out that the rate that Banks lend to each other (the LIBOR rate) had increased by 0.3% on Monday. This may eventually feed through into higher mortgage rates for us all.
No wonder people are confused! Most people have expected rates to fall this year, now the BBC seem to be suggesting rates could go higher. Well at least the BBC aren't responsible for interest rates, it's the Bank of England.
I took a call from a lady this morning. Her fixed rate mortgage with the Alliance & Leicester is about to expire soon. She too has listened to the conflicting opinions of friends and the media and is now very confused as to what type of mortgage she should arrange.
I explained to the customer that we should meet up to consider her options. We can explore why the Bank of England changes interest rates and also, more importantly, what a change in interest rates will actually mean to her mortgage payments. We also need to consider what changes are coming up in her life over the coming years and what her priorities are. This should help to put things into perspective and bring some clarity to the situation.
I reassured her that we would be able to work out together what is important to her and her family so we could make an informed decision.
In a time of confusion, it has never been more important for consumers to seek impartial professional mortgage advice.
A mortgage consultant can help cut through the media hype and work out with you what is really important to you and your family. A decision made clouded by the fog of media hype and speculation could cost you an awful lot of money!
UPDATE 31st January 2009, yes 2009!
Looking back at the words above, we wonder how many of those who fixed their rates in the summer of 2008 now regret their actions? Every single person we advised last year were told of the economic back drop and how the likely slowing down of the economy would lead to lower rates. Even we were suprised by how rates went. We don't claim to have a crystal ball, but we do give sensible advice about the impact the wider economy is likely to have on you and your mortgage!
