If you don’t have a fixed rate mortgage deal and you are on your lender’s standard variable rate, your mortgage rate may have seen regular and worrying repayment increases since the start of the year.
Interest rates could keep rising
A combination of factors has contributed to worldwide inflation pushing up the cost-of-living for everyone. The Bank of England took the decision to raise the Bank Interest Rate to 1.25% in June. This follows four previous interest rate increases. It is difficult to forecast what will happen from here, but interest rates could rise again soon.
Can you reduce or fix your mortgage payments?
Is it time to consider how to reduce or fix what is likely to be your highest monthly expenditure outgoing, your mortgage?
Is your mortgage on a Standard Variable Rate?
If your mortgage deal has come to an end and you have been transferred to your lender’s Standard Variable Rate, your monthly mortgage payments will have increased recently. It is important to check recent bank statements to compare mortgage payments since the start of 2022. If you see an increase in payments, speak to a Mortgage Adviser, and get the right financial advice for your circumstances.
Do you have a Tracker, Discount or Variable Rate Mortgage?
These types of mortgages move in line with the Base Interest Rate. Each time rates increase; your mortgage payments will rise too. Speaking to a Mortgage Broker will enable you to find out if it’s worthwhile swapping your mortgage to a Fixed Rate Mortgage. In these turbulent economic times it is important to talk to a mortgage expert who can help you make important financial decisions that may save you money.
Are you within 12 months of your current mortgage deal ending?
You may be asking “what happens when my fixed rate mortgage ends?”.
Hedging your bets may not be the right course of action. Even if your mortgage rate is due to end in 12 months, it may be better to change to a different mortgage deal now, rather than wait. Changing your mortgage deal may result in both an early redemption charge and an increase in your monthly mortgage payment. However, it may save you money in the long run, which is why we advise calling your mortgage adviser for appropriate mortgage advice.
If mortgage rates continue to rise the likelihood is that banks will increase the gap between the Base Interest Rate and their Mortgage Products and deals. At Fortune Financial, we work with our clients to ensure that their mortgage is right for their financial situation and for any forceable future changes. In the current environment, with so much uncertainty, it is worth calling our Mortgage Brokers to review your mortgage so you know what your options are, and you can act, if necessary.
Our mortgage broking team don’t have a crystal ball; however, they have knowledge of the mortgage market, and can provide you with information on suitable mortgage products. They also keep an eye on influencing economic factors which provide them with the foresight to provide advice and forecasts for several eventualities.
If you would like a Mortgage consultation, please contact our Mortgage Advisers who will review your circumstances and provide personalised mortgage advice fit for the current economic and financial climate.