Opening eyes for homeowners

Homeowners should be on special watch of their funds with the new interest rate raised to 5% by the Bank of England. On average, this rate will raise the typical £120,000 mortgage to an extra £20 per month, adding up to an extra £240 pounds a year.

A survey released by HBOS this week’s past, showed that the average house price jumped by 1.7% in October resulting in the annual 8.7%, leaving the average house costing around £184,593.

Homeowners and borrowers are advised to become educated about how interest rates affect them. Start looking toward the future now, since the threat of yet another raise in rate lingers in the crisp fall air. Borrowers should hope for the best but expect the worst; factor in the increases of rates now and plan accordingly. Homeowners should consider their mortgage options to prevent unexpected proceedings. These precautions measures could lead to less stress and readiness for when news hits the press on whether rates will rise or not.

http://www.myvesta.org.uk