With recent figures indicating subdued wage growth and inflation, some experts believe that next month’s anticipated base rate increase is no longer a certainty.
Whether that increase does come in August, or later on in the year, it pays for consumers to be as prepared as possible. The good news is that competition amongst mortgage lenders is currently very strong, and a number of high street names have cut rates in recent weeks.
Longer-term options are also proving more popular ahead of a potential rise. Rates on 10-year fixes have come down, and borrowers no longer have to pay such a large premium for the security that a long term fixed rate offers.
Borrowers must however be mindful of any likely changes to their circumstances before locking in to a deal for the next decade, as although most deals can be transferred to a new property, a lender will reassess the debt as they would do a new loan.
Elsewhere the Sunday Times looked at another area of the market – short term holiday lets. Most lenders don’t allow a home to be let out without prior permission, and even then usually prefer longer term lets to short term ad-hoc rentals – such as those done through Airbnb.
Holiday lets could well increase in popularity, following recent changes to tax relief, but experts advised borrowers to consider the additional admin, marketing, and maintenance involved in managing a holiday property, compared to a standard buy-to-let.
What the papers said about interest rates and Airbnb