Do you stick or twist on your mortgage right now?

Events in the Middle East have escalated dramatically in the past few days. So much so that the fallout from this is likely to affect most of us.

Take the simple fact that around 20% of the oil that is sold around the globe usually passes via the strait of Hormuz, via huge tankers. And that this passage is all but shut now due to Iran threatening to attack such tankers.

This has fed through to drops in the financial stock markets and will ultimately feed through to the petrol pump due to the supply and demand for such oil. Which will ultimately impact on the costs of goods and services to the consumer, i.e. you.

When the cost of goods and services go up, this usually drives inflation higher. Higher inflation means pressure on the Bank of England (BOE) when it comes to interest rate setting and trying to control inflation.

Going full circle, mortgage rates will be under pressure now. Before this Middle East debacle, the BOE base interest rate was looking likely for a cut on the 19^{th of} March.

Now? It looks far less likely. Santander has just today, 3^rd of March, said it is reducing rates on selected mortgages aimed at first time buyers. However, general opinion is these rates were `baked in` prior to the current events.     

So, if you are re-mortgaging/purchasing a property, do you lock in on a mortgage deal now?

Why not give Libby a call and talk through your mortgage options.