2015 Mortgage rate predictions | Number One Mortgages
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Looking ahead to 2015 mortgage rate predictions

Competition is not only the basis of protection for the consumer, but is the incentive to progress,

Herbert Hoover

2015 starts with some pretty aggressive mortgage rates

Mortgages look set to be even more competitive in 2015 than they were last year. A combination of factors such as low inflation, no imminent rise in interest rates and a ‘hunger’ from lenders to build new business has resulted in some very low rates, even on longer term fixed deals.

Are they set to stay or will we see a rise in the Bank of England base rate this year?

Whereas a year ago people were predicting an interest rate rise as early as Q1 2015, this is now looking less likely. The economic recovery has been slightly less robust than hoped and with inflation tracking at 1% (against a target of 2%) it may mean that any rises are put off until the end of 2015/early 2016.

Anyway what about house prices?

Most industry commentators are forecasting a modest rise of between 3-5% this year following a peak in house price inflation of 10% in July 2014. Predictions on property prices to 2020 are more speculative.”

Recent reforms in stamp duty have reduced costs for most which may also convince some buyers to take the plunge.

One thing’s for sure – with this year being an election year, it won’t be dull! I’ll try and keep you abreast of things as they happen.