Will we see a 2016 mortgage rates hike?

Knowing what will happen with mortgage rates during 2016 would make it so much simpler to work out what to do. If they had a crystal ball, home-owners would know whether to remortgage now or wait to see if lenders will reduce rates some more.

With rates already set low, the question is will they fall further? According to market analysts a further drop in rates in unlikely. 

Home-owners who have purchased property and took on a home loan since 2008, have only ever seen interest rates fall. During this time the bank rate has been kept low and has never increased. This has lulled so many into a false sense of security, leaving them thinking this situation won’t change.

In addition, over the years predictions of an interest hike have fallen short of the mark. With this in mind, are predictions of a rate rise in 2016 to be believed?

Well one very big piece of news that could finally make rate increase predictions come true, is the US has just hiked its interest rates.

With one of the largest economies increasing its rate by 0.25%, the feeling is other nations might soon follow suit.

If this happens and the UK decides to do the same thing, very soon we could see mortgage rates rise too.

Already we have heard that because from next year, UK banks will be required to keep an extra £1billion in reserve, rates may increase to cover this cost.This could be the case regardless of whether or not the BoE decides to increase the bank rate.

If you don’t want to risk rising rates, remortgage while you can. After transitional arrangements are introduced in March remortgaging is expected to get much harder, and so search the market now to ensure you can get accepted for a mortgage.

For advice and low rate quote, 

call Deal Direct on 0800 048 8828.