Is it time to review your mortgage?
We are all thinking hard about our outgoings right now and making cuts in our spending.
Whatever rate you’re on and irrespective of the term of your mortgage it’s well worth reviewing it now. You could make a saving and fix your monthly payments.
At the time of writing the UK interest rate is 3.5% and although this is still historically low, many borrowers and homeowners won’t have experienced interest rates this high, so, what does this mean for your mortgage?
The impact of UK interest rate rises on your mortgage
It’s estimated that three-quarters of mortgage holders are on fixed rates and will see no response to rate changes*. However, an estimated 2 million people are said to be on a standard variable rate (SVR) or tracker mortgage and will see their monthly repayments go up.
With the financial markets reportedly anticipating the bank base rate to increase again in February 2023, if you haven’t already done so and have less than 6 months left on your fixed-rate mortgage, or are on an SVR or tracker, speak to a mortgage adviser as soon as possible.
It makes sense to lock in a new fixed rate ahead of further potential rate increases.
Contact us and we can put you in touch with Adam for a friendly chat to see how he can help you and review your options. Adam is an experienced, trusted mortgage advisor for Mortgage Advice Bureau.
Please do remember that your home may be repossessed if you do not keep up repayments on your mortgage.
* ukfinance.org.uk – quarterly-trends-in-economy-analysis.