A report issued this week by PricewaterhouseCoopers warns that Bank Base rate could rise to 5.5...
A report issued this week by PricewaterhouseCoopers warns that Bank Base rate could rise to 5.50% by the close of 2003. The report also suggests that Bank Base will likely remain at 4% until later this year.
With this in mind, Ray Boulger, Senior technical Manager at Charcol made the following comments:
"With Bank Base Rate forecast to remain close to 4.0% for most of this year, borrowers who have flexible mortgages or mortgages that allow penalty free overpayments, would be wise to make use of the headstart they will earn this year and use the increased cash flow to overpay their mortgage - thus making the burden of interest payments lighter when interest rates do rise and also providing a buffer in case interest rates should rise further than expected."
"While many borrowers are choosing to opt for fixed rates, there are still some excellent discount deals available - some with payable rates as low as 2.75% in the first year. Borrowers who are prepared to take a view on interest rates should weigh up their options carefully."
"Although some increases later this year and next year are probable, and a rate of 5.5% at the end of 2003 is entirely feasible, volatility of monthly economic figures are making it more difficult than usual to predict interest rate trends with confidence. However most economic forecasters agree with PWC's report and consider it likely that Bank Base Rate will hold over the next few months and indeed expect it to remain within 0.25% of 4% until well into the third quarter of this year."
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till