PERRY Bishop and Chambers’ financial advisor, Mark Weston, takes stock and asks if the battle of low interest rates now over.

2016 will certainly be a year to remember.

We sadly said goodbye to an astonishing number amount of celebrity icons, then there was Brexit, Theresa May, Donald Trump, plastic fivers, and most importantly (in our world, anyway) record low interest rates.

But with the Bank of England continuing to freeze the bank rate at 0.25 per cent, it poses the question: what does this mean for the year ahead?

Will interest rates rise?

With concerns over a slowing economy, the interest rate dropped in 2016 and saw lenders battling to retain the all-time-low status for fixed-rate mortgages.

However, there’s been a recent change in sentiment and economists are now predicting that an interest rate rise could well be on the cards for 2017, with certain lenders showing signs of this already.

Mortgage rates are largely influenced by something called ‘swap rates’.

Following the Brexit vote back in June 2016, swap rates fell, which in turn saw lenders lower interest rates, particularly on fixed mortgages.

Since then, there’s been a steady increase in swap rates which could partly explain the slow rise in interest rates we’re starting to now see.

One lender has already announced they will be increasing the rates on all fixed-rate products by between 0.1 per cent and 0.5 per cent.

This doesn’t come as quite so much of a shock when you look at recent Council of Mortgage Lenders (CML) figures that show how loan affordability is at a historic low for those on the housing ladder and those looking to get on it.

What does this mean for me?

Just like none of us could have predicted Brexit or Donald Trump, we can’t predict which way interest rates will go in 2017.

We can of course look at the facts, but even if interest rates do rise, fixing your mortgage now could still be the right option for you, as regardless of interest rates, a fixed rate can offer stability, which some people prefer to have.

As we can’t look into the future, we recommend you speak to one of our expert mortgage advisers if you’d like to discuss either remortgaging, Buy to Let investments, buying for the first time, or moving house.

We’ll be able to chat with you, and once we have a good understanding of your personal circumstances, we’ll recommend products that could be right for you.

It is important to remember there are always options available and we’d be more than happy to help run through these with you. Just simply get in touch with us today to arrange either a face-to-face or an over-the-phone appointment with an adviser.

  •  Mark Weston is from Perry Bishop & Chambers – for further information call: 01285 655355 Email: mortgages@perrybishop.co.uk or visit: perrybishop.co.uk/services/mortgages Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for mortgage advice.

The actual amount you pay will depend upon your circumstances.

The fee is up to one per cent, but a typical fee is 0.3 per cent of the amount borrowed.