Base rate likely to re­main low

Yorkshire Post - Property - - PROPERTY -

This week’s de­ci­sion by the Bank of Eng­land’s Mon­e­tary Com­mit­tee to keep the base rate on hold at 0.5 per cent for the 18th month run­ning was widely ex­pected by most com­men­ta­tors.

“Al­though a few voices are rais­ing some con­cerns about in­fla­tion­ary risks, I do not ex­pect the base rate to rise un­til the sec­ond quar­ter of next year, given the on­go­ing con­cerns about the econ­omy,” says Simon Gam­mon, head of Knight Frank Fi­nance, which spe­cialises in mort­gages over £1m. “Even then any in­creases will be grad­ual.”

He adds: “It could, how­ever, make sense to take ad­van­tage of the cur­rent op­por­tu­nity to fix rates at favourable long-term rates be­fore they in­crease. Fiveyear fixes are avail­able at un­der four per cent and so if you can af­ford it, you should con­sider fix­ing some or all of your mort­gage at this rate.”

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