Mark Carney has assured that interest rates are not set for an imminent rise – despite his warning as long ago as the 2014 Mansion House speech that rate rises might be approaching.
The Governor of the Bank of England said that any interest rate increases in the future would be small and gradual, stating his reasons for this being that “the world is weaker and UK growth has slowed”. He also said that volatility in China – which earlier today announced its lowest growth rate for 25 years – as well as a collapse in oil prices and sluggish pay growth in the UK meant that any rate rise could be delayed.
Economists predict there will be no change in interest rates until the second half of the year or even into 2017.
This comes as very welcome news for mortgage holders. If you are thinking about making the change to a fixed-rate mortgage – or indeed thinking about taking out your first mortgage – then now is the perfect time to take advantage of these low rates.
Our overarching advice is to review your current situation to ensure you have the best mortgage deal you can. With rates staying lower for longer, a fix rate mortgage ahead of any rises may be a good option for many.
Carney’s announcement is not exactly music to the ears of savers, however. Low interest rates mean a low rate on your ISA, and so less scope for big savings. Our advice in this area would be to shop around. Don’t settle for your existing ISA because you feel a loyalty to them – the market moves faster than ever and you might easily miss out on a better deal if you don’t open your eyes to what else is out there.
If you would like some advice on mortgages, savings – or indeed any part of your financial portfolio – then please call our Hove office on 01273 208813 for a no-obligation initial meeting at our cost.
This article was originally published on Monday, January 25, 2016 – 10:08
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