Don’t Gamble With Your Home!

Nov. 23, 2006 – The minutes of the latest Monetary Policy Committee showed that Bank of England Deputy Governor Rachel Lomax unexpectedly joined David Blanchflower in voting against an interest-rate rise this month.

The two dissenting voices on the Monetary Policy Committee have raised doubts over the likelihood of another interest-rate rise. Currently, the market thinks that another rise in interest rates this year is unlikely. But it still believes interest rates may rise to 5.25% by March next year, with the chance of further interest-rate increases diminishing after that.

David Kuo, Head of Personal Finance at www.fool.co.uk says: “It is reassuring for homeowners with mortgages to know that interest rates may peak at 5.25% next year.

“But homeowners should not be complacent, nor should they try to second-guess the direction of interest rates when their homes are at stake.

“There is still an 80% chance that interest rates may increase to 5.5% by the end of 2007. That will mean borrowers need to find an extra £83 a month or £996 a year in interest payments on a £200,000 loan.

“But worries about rate hikes can be put on the back burner if you take out a fixed-rate mortgage. It’s ideal for people who need to know where they stand financially from pay packet to pay packet.”

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For further information, please contact
Sonia Rehill
PR Manager
DD: 020 7297 8159
soniar@fool.co.uk

Notes to Editors:

1. The Motley Fool’s Mortgage Comparison Centre makes mortgages simple to understand with impartial information on mortgage products.
2. Customers can get quotes, compare UK mortgages online, and find the best deals from over 8,000 mortgages and get fee-free mortgage advice at: http://www.fool.co.uk/mortgages/compare-mortgages.aspx

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