Is it a good time to re-mortgage and create the home of your dream? The short answer is that yes, now would appear to be a good time to secure a long term fixed rate, and the security that this will offer, if appropriate to your circumstances.
The market seems conflicted about predictions for the future. On the one hand we have people such as Rob Wood, a former economist at the Bank of England, saying that “Record low interest rates are increasingly unnecessary and difficult to justify*.” On the other hand we have the Bank of England repeatedly saying, in response to suggestions of another property bubble and an ‘overheated market’ in London and the South East, that it does not want to raise rates earlier than planned and has other measures that it could use to control the housing / lending markets. As unemployment figures, manufacturing sector performance, and GDP figures improve, it seems likely that BoE rates may rise (from currently 0.5%) next year, probably above 1 per cent and possibly as high as 1.75 per cent according to some City economists.
It’s not just about mortgages, but also think about protecting yourself in the here and now and beyond.
I spend plenty of time with clients talking through options for life, critical illness, and income protection insurances. These may not be the most uplifting topics (you may think) but I’d disagree. These conversations are about making decisions now that can have a positive impact for years ahead but without costing the earth. Wouldn’t it be uplifting to think that you’ve got your ‘house in order’, and there’s some security in place to help with some of what life could throw at you?