No need to panic over rising interest rates, says Shropshire Finance Society
Q Financial Services, which has offices in Wellington and Shrewsbury, said raising rates to 0.5% should not cause unnecessary alarm among mortgage holders.
The Bank of England raised rates for the second time in three months in a bid to rein in a rapid rise in the cost of living.
However, Q manager Mitch Gough said rates still remain at historic lows and the cost of borrowing is likely to remain low for the foreseeable future.
“We warned three months ago, when the Bank first raised rates, that another hike was likely, and we’re not surprised it’s happening now. inflation continues to rise and the cost of living continues to be a dominant factor in the economy.
“But homeowners and first-time buyers will continue to have access to mortgages at historically very low rates, and we don’t see that changing significantly over the long term.
“As always, it pays to get professional advice and shop around to find the mortgage deal that best suits your situation and long-term planning.”
Inflation, as measured by the consumer price index (CPI), is expected to peak at 7.25% in April, well above the Bank of England’s 2% target.
Mitch added: “Inflation is expected to average around 6% throughout the year, so we expect the Bank of England to remain under continued pressure on rates.
“We advise all families to keep their budget under review and seek professional advice if they need help restructuring their own commitments.”
Caption: Mitch Gough, Director of Q Financial Services