AV Rillo and Interest Rates
- November 7, 2014
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Recent news on the Bank of England’s interest rates suggests that the chances of the Bank raising borrowing costs before the next election are receding; the rise in interest rates which was predicted for 2014/2015 is not now expected. Also, it is now predicted that when rates do rise again, it is likely to be at a gradual rate, rather than suddenly. What does this mean for people hoping to buy or sell houses through AV Rillo?
AV Rillo and cheap mortgages
The Money Advice Service reported recently that three quarters of homeowners hadn’t even considered how they would cope if the interest rate on their mortgage were to rise by three per cent. Some hoped that they would be able to redirect money currently spent on other things, or perhaps use savings. Clients of firms like AV Rillo who were buying their first home were particularly likely to have had no experience of interest rates in excess of three or four per cent, and were therefore least prepared for a sudden an unexpected rise in their monthly outgoings. For this reason, the news that interest rates are likely to stay down could be a life-saver for many first-time buyers.
AV Rillo and fixed-rate mortgages
One effect of the changing expectations of future bank rates has been a prediction that some good fixed-rate mortgage deals will be available over the next few months. AV Rillo clients may be thinking of watching out for five-year deals at rates as low as two per cent.
AV Rillo, interest rates and buy-to-let mortgages
AV Rillo clients who are buying for investment purposes will be particularly concerned about future interest rates, because the profitability of their investment is likely to depend upon them. The latest news about the Bank of England rate will therefore have been reassuring to prospective landlords.
AV Rillo and house prices
The prospect of the availability of low-cost mortgages is likely to provide another impetus to the London housing market over the next few months.