Expats with a mortgage in the UK will be pleased with this news.
The Bank of England has kept its base rate on hold, but a May rise is still widely predicted
The Bank of England’s Monetary Policy Committee (MPC) has voted by a majority of 7-2 to maintain Bank Rate at 0.5%.
Following an increase from 0.25% in November 2017, the Bank Rate has been held at its current 0.5%.
But it may not stay that way for long – with many experts predicting an increase in interest rates in May.
The Bank’s own report admitted that an ongoing tightening of monetary policy over the forecast period will be appropriate to return inflation sustainably to its target. Inflation is currently 2.7%, against a 2% target.
The MPC added that “all members agree that any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent”.
How this may affect borrowers
If the Bank of England does hike rates in the coming months, expat borrowers could see their monthly mortgage repayments rise.
The Bank of England may have opted to sit tight now, but it’s likely that they’ll lift rates in the next couple of months. This would impact all consumers, but particularly homeowners who’ll see mortgage rates rise to their highest level in a decade.
Good advice for expats
If you have a mortgage on a property in the UK it would be sound advice to get it reviewed as soon as possible. If all the predictions are correct switching to a fixed deal if you have no redemption penalties could save you a lot of money in the future.
Can we help?
If you are looking for a new or wish to review your current mortgage, please do make contact and one of our advisers will be happy to assist.