Why you should Fix your rate.During these uncertain times, no one is quite sure what will happen with Interest Rates.
Your deal may have finished, and you have moved onto your lender’s Standard Variable Rate. So what? It only went up a few £ per month and you can afford it. The Bank of England’s Base Rate is still low and has been for some time. Why bother changing?
Interest rates are used to control inflation. If inflation rises, interest rates may be increased to make borrowing unappealing, meaning people have less to spend, therefore reducing inflation. Likewise, if the economy is stagnant, interest rates could be lowered to stimulate borrowing and, in turn, the economy.
With the uncertainty surrounding Brexit there may be a clamour by customers to get their deal’s fixed again, to guard against potential interest rate rises and to offer a modicum of security as no one knows for certain what the rates will do in the next few years.