As we go headlong into 2018, I predict that UK interest rates will stay low, even with the additional 0.25% increase that is expected in May or June. This rise will add just over £20 to the typical £160,000 tracker mortgage, although with 57.1% of all borrowers on fixed rates, it will probably go undetected by most buy-to-let landlords and homeowners.
I also think it’s unlikely that we’ll see any more interest rate rises due to the fragile nature of the British economy as it continues to navigate Brexit. Even though mortgages will remain inexpensive, with retail price inflation outstripping salary rises, it will still very much feel like a heavy weight to some Bicester households. Read More