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Mortgage Guarantee Scheme Fails To Boost First-Time Buyers
February 23, 2022Mortgage Value Rises 5% YOY
April 19, 2022It’s not every day that one takes financial or economic advice from Mr Bean. But when it comes from the former deputy governor of the Bank of England, one may sit up and take notice.
Speaking to the Press Association this week, Charles Bean criticised the Monetary Policy Committee (MPC) - on which he used to sit - for not raising interest rates before December last year, despite clear signs that inflationary pressures were surging.
Arguing that the MPC “has erred too much towards looseness through the course of the past few months,” he warned that they may now have to “move faster” in raising the base rate further 2022 to come to curb price rises, currently at their highest in nearly 30 years.
Higher rates will have significant potential to impact on mortgage costs and for those keen to take out their first home loan, such a prospect is something that could raise plenty of questions. Speaking to a first-time buyer mortgage advisor is an essential next step.
Options for first time buyers vary, including standard variable mortgage that tend - although this is not automatic - to change as the base rate does. A tracker mortgage will automatically change in line with the base rate, while a fixed rate mortgage will offer an unchanging cost, although the value of this may depend on whether rates will rise as much as experts anticipate.
Many first time buyers will be unaware just how low the base rate has been in historic terms of late. While the 0.1 per cent figure set in the pandemic is the lowest ever, it has been below one per cent since March 2009, in the midst of the financial crisis, having been at five per cent when the credit crunch began in the summer of 2007.
This is the only time rates have been below one per cent in the history of the Bank, which was founded in 1694.
Your Home may be repossessed if you do not keep up repayments on your mortgage.
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AUTHOR
Imran Bhatti
Imran created I.I Financial Services Ltd. in 2020 after working in the mortgage industry for over 10 years. His main reason for ‘going it alone’ was Imran’s unwavering desire to put his clients first. Imran has worked for large corporate companies as well as smaller independent brokers but what he loves is the personal customer experience. His clients are like his family. Imran loves a challenge and when faced with an unusual case he will find a way to satisfy the clients’ needs. Nothing is too difficult. Imran is a family man who devotes his spare time to his three children. Anyone who knows Imran would describe him as fun, with a great sense of humour, generous, caring and extremely professional. Once you have met Imran and experienced his service you will stay with him for life.
