Friday 8th September 2006
Customers with tracker mortgages will have been relieved to learn that the Monetary Policy Committee (MPC) decided against further interest rate rises yesterday.
However, a number of leading experts are predicting that a further rate hike could be seen before the New Year, meaning those thinking of taking out a new mortgage will have to be vigilant.
Mortgage adviser John Charcol is among the companies that believe a further increase is possible, with Novembers report on inflation likely to be the big decider for the MPC.
The firms Drew Wotherspoon added that if the housing market continues to show good growth, mortgage holders should expect to see future rises.
However, he stressed that trackers are still a good option for the foreseeable future.
"For those able to afford a tracker they are still the best option and offer better value than most fixed rate mortgages in the current market," he said.
"Trackers will continue to be a good option unless base rate rises above 5.25 per cent which won’t happen in the near future."
The current base rate stands at 4.75 per cent.
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