By autumn 2022 inflation is expected to hit around 10%, driven mainly by energy and food price rises. The Bank of England has been increasing interest rates, with the most recent rise in June 2022, when the base rate went up to 1.25% from 1.00%.
Fixed rate mortgage
If you have a fixed rate, then your mortgage repayments won’t change until the end of your deal. If your fixed rate deal is due to finish in the next six months, we can help you lock in a new rate up to six months ahead of your deal ending, and you will avoid paying an early repayment charge. We will let you know when you are seven months away from your deal ending, and help you get a new deal ready.
If you have questions about your mortgage, give our expert advisors a call.
Tracker/Variable mortgage
If you are on a tracker or variable mortgage deal your monthly repayments will increase in line with the base rate. Your lender will write to you and let you know when you will get an increase.
Many lenders will allow homeowners with a variable rate mortgage to change to a fixed rate mortgage at any time without a penalty.
Tracker mortgages can switch but you must be aware that there could be early repayment charges if you switch before the end of your deal.
It’s always worth getting in touch with us for expert advice on what will be the most suitable option for you.
Remortgage
If you can remortgage, it is advisable to act sooner rather than later to secure the most suitable fixed rate deal and avoid future mortgage repayment rises. Please consider if an early repayment charge may apply.
Talk to one of our expert advisors who will offer guidance on the most suitable options for your circumstance.
Our thoughts
For those moving home we advise looking to secure a rate quickly, and for those on a tracker or variable rate, or nearing the end of a fixed rate to consider reviewing their options before monthly repayments increase.
If you’re ready to begin looking for your next home, looking to remortgage or considering releasing equity in your home for property upgrades, the next step is to get an accurate figure on how much you can borrow. Our expert team can advise you with a quick 15-minute phone call.
