Over the last few days, news outlets have widely reported the latest inflation figures. Due to rising fuel and food prices, the Consumer Prices Index (CPI) has risen to a three and half year high of 2.3% with a peak expected next year of 2.8%.
This means inflation is increasing at the same rate as average pay rises so any increase in our wages is gobbled up by inflation!
So why would we write about this? Well, the Bank of England Governor has said he does not see interest rate rises imminently but it all just adds to the pressure that the next movement will almost certainly be upwards.
According to research by Virgin Money (Virgin Money analysis based on stock residential mortgage data from the CACI mortgage market database 31 August 2016), around 32% of the population, 3 million people approximately, pay the lender’s Standard Variable Rate (SVR). This is their most expensive interest rate and means that many customers are missing out on the chance to save money or pay off their mortgage early.
The average SVR is 4.56% as stated by the Virgin Money research, which is significantly above the best fixed and tracker rates available currently in the market place.
We hear quotes such as “I don’t know enough about it” or “the costs must be expensive” – and that’s exactly what a good whole of market mortgage broker is here for, to help explain the options and guide you through the potential costs and savings as well as handling the whole transaction on your behalf.
Inflation is rising, interest rates may well do the same soon……….do you want to be one of the ones to miss out?
Contact us now for a no obligation review
Paul Hardingham and Tony Ibson are Mortgage and Protection Advisers at Innovate Mortgages and Loans. Both have over 20 years of experience advising individuals and businesses across the North East of England. They can be contacted for bespoke advice at firstname.lastname@example.org or email@example.com or call 0191 223 3514.
Think carefully before securing other debts against your home.
Your home or property is at risk of repossession if you do not keep up repayments on a mortgage or other loan secured on it.
Innovate Mortgages and Loans is a trading style of Innovation Financial Management Ltd.