PSFM mortgage adviser John Postlethwaite says: “It has never been harder to call what will happen to mortgage costs next, as there are so many conflicting pressures. But nothing much will change until banks come back into the market and start cutting their margins and lending again. It would also help if the Bank of England’s interest rate remit was widened so the Monetary Policy Committee could consider a broader range of factors when deciding the next direction of borrowing costs.”
Kevin Mountford, head of savings at price comparison site moneysupermarket.com, says: “We have seen some fantastic fixed rate bonds pop up recently. While savers can now take advantage of several accounts offering over 7%, if you can hold on for a little while longer it might prove financially worthwhile. We can expect even better rates to trickle through if, as expected, the Bank of England raises interest rates again.”
Related reading: Secured Loan Rate UK
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