turbulence getting you down? Have you got a mortgage-related question you need answering? Email in and we’ll get one of our experts to reply. Nick Mendes, mortgage technical manager atI’m coming off a fixed-rate mortgage soon and expect to pay more on my new deal. But with interest rates expected to fall as soon as August, is it time to consider a tracker deal?at 5.25 per cent for the seventh consecutive time.
First, it’s important to understand what interest rates are and why they change. Interest rates represent the cost of borrowing money or the return on savings. They are set by the Bank of England’s Monetary Policy Committee to control inflation and maintain economic stability. While precise predictions are difficult, speculation around interest rate cuts has been increasing, with some experts predicting that the Bank of England might lower rates as early as August. This is based on recent economic indicators suggesting a slowdown in growth and inflation showing signs of stabilising near the 2 per cent target. However, it’s essential to note that predicting exact timings can be challenging as the MPC responds to dynamic and evolving economic data.
However, everyone’s circumstances are different, and there may be reasons why a tracker mortgage is beneficial. For example, those planning to make substantial overpayments might prefer to avoid early repayment charges, which are typically absent from tracker deals.