It’s impossible to predict with any certainty when interest rates will rise again – there are no hard or fast rules about when exactly it will happen.
The most important thing for borrowers is to be sure that if you’re on a tracker, discount or other variable rate mortgage – you could still afford your repayments if rates went up by 2%. Although it’s unlikely that rates would rise by 2% in a short period, it’s not impossible.
On Black Wednesday back in 1992, the Chancellor raised interest rates by 2% in one day, and a further 3% shortly thereafter. Although this was an extreme event, it goes to show that movements in interest rates can be unpredictable.
Refer to our interest rate calculator which will help indicate what interest rate a new mortgage would need to save you money.
For more information about how interest rate changes could affect your mortgage give our experts a call and they can advise on the best option for your circumstance.