Fixed rate mortgages are the highest they’ve been for seven years, as interest rate rises have a knock-on effect on mortgage rates.
With the cost of living crisis dominating the headlines and interest rates rising, it’s safe to say we’re all feeling the pinch. Unless you’re on a fixed rate, you’ll have noticed your monthly mortgage payments have increased. Even if you got a cheaper fixed rate deal from previous years, when you next remortgage, you’ll end up paying more than you previously were.
Higher fixed rate mortgages
The cost of mortgages can potentially go up with every base rate increase. As the Bank of England continues to raise the base rate in an attempt to tackle inflation, homeowners may consequently see an increase in the interest they pay on their mortgage payments.
If you’re currently on a fixed rate product then you won’t have noticed a difference in your payments. However, there’s an estimated two million borrowers whose current fixed rate mortgage will end in the next twelve months1. Once yours ends, you’ll swiftly notice a difference in your payments. For instance, the average five-year fixed rate mortgage now stands at 3.17% - an increase of 0.53% since December 20212.
If this applies to you, then you have a decision to make. Do you wait until your fixed rate product ends, or do you remortgage now?
Review your mortgage
Did you know you can remortgage up to six months before your deal comes to an end? By speaking to a mortgage adviser early on, we’ll help you weigh up if it’s worth waiting until the end of your mortgage, or exiting early in order to lock in a cheaper deal now, as experts predict the base rate will continue to increase to around 3% by mid 20233.
It’s never been as important to review your mortgage as it is now. A qualified mortgage adviser can do this for you. We’ll go through the pros and cons of remortgaging early, taking into consideration any early repayment charges, to find the most cost-effective deal for you.
Get advice from professionals
The earlier you can get in touch with us the better, as this improves your chances of securing a better deal before interest rates increase again.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.