Act Now to Secure Low Rates

As we had anticipated, the Bank of England has maintained their policy of raising interest rates to tackle inflation, warning inflation could now reach 11% by October.

On June 16, the Bank voted to increase the base rate by 0.25%, taking it to 1.25% – a rise that will affect more than 850,000 homeowners almost immediately.

We have been vocal about the importance of reviewing your current mortgage, particularly if you are on a standard variable rate or have a fixed deal coming to an end within 6 months. 

Statistics show that a quarter of all UK homeowners are on variable, tracker, or standard variable rates which are directly linked to movements in the base rate. The rising base rate means 850,000 people on tracker mortgages and 1.1million on variable deals will see their mortgage rate go up.

If you are on a fixed-rate deal, you won’t be affected by higher interest rates until your deal expires. However, when it comes to looking for a new deal, you will find rates much higher than when you last fixed. 

According to the financial information firm Moneyfacts, the current average two-year fixed rate deal is 3.25% – up 0.96 percentage points from November and the average five-year fixed rate mortgage is currently 3.37%, up 0.78 percentage points.

How we can help
Consecutive interest rate rises have prompted a surge in our clients wanting us to review their current product and help them establish which route to take, either immediately through a remortgage or prior to a fixed rate coming to an end.

We have access to lenders that allow you to lock in a deal six months before your deal ends, If your mortgage deal is expiring in the next six months, now is the ideal time to look at whether remortgaging and fixing your mortgage costs could save you money. 

If you would like to discuss options available to you, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively schedule a call back by clicking on the button below.

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