MORTGAGE INTEREST RATES - “Wingardium Leviosa”!
Posted on 14th October 2021 at 11:27
Is “The Mortgage Thing That Shall Not Be Named” threatening to strike Muggle homes this winter?
Certainly looks like it. After years of almost magically low interest rates, a Bank of England official has given the strongest warning yet that there will be “significant” interest rate rises soon due to increasing inflationary pressures.
In September the Bank of England stood firm keeping the base rate at its all time low of 0.1%, despite a 3.2% annual inflation rate (the highest level in more than nine years). This means that the Bank must take action and increase interest base rate in order to stem the spectre of inflation. Increasing the cost of borrowing puts a brake on spending. This in turn puts a brake on inflation which is essential in order to stop inflation getting out of control.
It doesn’t take Harry Potter’s magical powers to understand that higher interest rates means higher costs for the home, including mortgages. So, “Winter Is Coming!”
The reality is that nothing can be done personally to reduce higher energy bills and food prices. It is also a fact that homeowners are unlikely to find Dumbledore to weave a spell to make a mortgage vanish. However, there is hope for anyone on, or approaching a lender's standard variable rate! The best idea is to talk with a friendly mortgage adviser and let him try and work a little professional magic for you instead.
As you can see in the image here, I say; “VoldeMortGage Cheeryupus!”
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