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With inflation still on the rise  interest rates will continue to move upwards unless the national economy begins a downshift in the near future. With this, mortgage rates are set to enter double figures again after a long respite of 11 years. I remember well the 1980’s where the average house owner was paying up to 18 per cent interest on their loans; this resulted in many people losing their homes.

For the first time in 11 years though rates are set to climb to 6.75 per cent, an all time high for many years. But will this be enough to bring down inflation?. Many experts and top economists think not, with most predicting at least two more rate rises next year before any change in the inflation climate is detected. Rates may even peak at 9 per cent. While this may spell disaster for many people the answer may lie in refinancing their mortgages.

The best thing to do would be to consult a mortgage broker asap and find what options are available. Until inflation comes under control the average homeowner should take all precautions to protect themselves should those rates climb further towards those dreaded ‘double figures’ once again.

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