Moving forward from the uncertainties of last year, interest rates have been the topic of much discussion. Experts have stated they are unsure how the rates will take shape for the new year. One thing everyone needs to keep in the back of their minds, however, is to prepare for inflation to rise.
So why should we be prepared for high interest rates in the future?
The World Bank has warned western countries that we should prepare for this inevitability due to the amount of growth that has taken place. Franziska Ohnsorge, Lead Economist at the World Bank said: “There could be faster than expected inflation [and] that would mean faster than expected interest rate hikes.” This is down to a better-than-expected performance from the Eurozone, US, China and Japan.
Most predictions concerning rising interest rates come from previous experience and looking at what events have come before. By analysing that data and its effects, we can single out patterns and generate a plan of action on how the market will form after an event. With the performance of those countries overlooked, the World Bank will have to recalculate to which degree inflation will take place in the future. The latest news has seen mortgage professionals spurred on to recommending mortgage owners to fix their rates depending on their situation.
With this uncertainty, by taking advantage of the current state of rates in today’s economic climate, you’ll be able to avoid the future rise that is on the horizon. Although there is advice being spread across numerous news pages and personal finance blogs, in order to gauge your situation and what is best for you, it is always worth speaking with an expert beforehand. Trinity Mortgages offers advice and currently provides low interest rates for mortgages across hundreds of properties, so we are working with many homeowners to deliver the best strategy to capitalise on this current state of affairs.