Are homeowners ready for another interest rate rise?
We have already seen one interest rise and now the talk is that another one is coming and could be here as early as May.
Of course most of us never know in advance when a rise is coming and rely purely on what we read or hear on the television. Recently the commentary is starting to suggest that the second rate rise in years is closer than we think.
If you are a homeowner what does this mean to you?
The most obvious people to feel this will be anyone that has a mortgage and who is currently not on a fixed rate. Their lender is likely to pass on the full amount to them in the form of higher monthly payments and usually the month after the interest rate rise is announced. Higher monthly mortgage payments hit people’s monthly budget and what’s left over for everything else.
Some borrowers have thought ahead and taken the option of fixing their mortgage payments for a period. This will give them the peace of mind of knowing what their monthly payments will be and will shelter them from any other rate rises that come along in the short term.
Others have looked to reduce their monthly payments by looking at consolidating more expensive debt, such as credit card or unsecured debt, in with their mortgage at the lower rate.
Whatever your situation looking at your options is vital and taking some good advice is always recommended.