Guest author Dominic Taddei, Managing Director of Clear Mortgage Solutions discusses the importance of acting now to avoid losing out.
With the Governor of the Bank of England, Mark Carney, hinting a UK interest rate rise is on the agenda at the turn of the year, it’s a good idea for homeowners to think ahead and review their current mortgage deal now - as even a 1% rise can be the difference between being comfortable or struggling with monthly repayments.
Borrowers have for some time enjoyed the benefits conferred by historically low base rates, as well as competition amongst lenders. With record low current interest rates of below 1.5%, borrowers should not neglect to act in order to secure the best deal ahead of any announcement.
Some lenders will start raising prices before the change comes in, making time even more limited for anyone wishing to find a better deal. However, some people are beginning to realise that the window to secure low rates is narrowing and with an imminent rate rise we have seen borrowers actively looking for long-term fixed deals, opting for five-year fixed rates, or even ten-year schemes. Any mortgage deal of course depends on the borrower’s personal circumstances.
It has now been over six years since the last Bank of England rate move and eight years since the last increase. This means many borrowers have never experienced a Bank of England rate rise, including one million first-time buyers, therefore any increase could cause a payment shock for some. While many borrowers will still be on fixed rates, those on variable rates or those coming to the end of their fixed rate term are encouraged to review their mortgage.
With thousands of mortgage products to choose from across the market, it is advisable to seek independent professional mortgage advice so you can make fully informed decisions that get the best result for you - particularly as those offers which look best initially may prove costly long-term.
For more information contact Clear Mortgage Solutions on 0800 652 6649 or email email@example.com
It is important to remember your home may be repossessed if you do not keep up repayments on your mortgage.