The Bank of England increased the base rate from 2.25% to 3% on Thursday 3rd November. Another base rate hike and the largest single rise since 1989. This no doubt sounds very daunting for any homeowner with a mortgage.
What does this mean for your mortgage?
If your current mortgage deal is looking to end in the next 12 months, you have options you can explore now and this is where we can help:
Your options
If your current mortgage deal is looking to end in the next 12 months you have options you can explore now, with our help:
- If your mortgage is due to end in the next 6 months
Give us a call to look at securing a deal ahead of your deal coming to an end. Some lenders can lock in deals up to 6 months in advance so it might be worth the discussion now.
- Weigh up your Early Redemption Charges against the higher rates
If you’ve got longer than 6 months on your current deal, the Early Redemption Charges may work out costing you less overall than the higher interest rates that could be in place when your current deal comes to an end.
- On a variable or tracker rate?
Once you know your new mortgage rate following the base rate rise, contact us so we can discuss if you ditch, switch and save - and act quickly, as current rates are being rapidly reviewed and increased. This is especially likely for those on standard variable rate (SVR) mortgages.
As a mortgage holder, it can be confusing and unclear what the changes mean to you, but if you’re unsure we’d encourage you to pick up the phone and get in touch with us to discuss your current situation so we can advise on the most suitable options.
- If you’re struggling to pay
Avoid missing repayments without first speaking to your lender. With the cost of living increasing, many homeowners are struggling to meet their mortgage repayments. Missing a mortgage payment is known as falling into 'arrears'. You want to try to avoid this as best you can, as it'll have a serious impact on your ability to get credit in future. So, speak to us, or your lender as soon as you can to discuss your options.
Our role is to help you avoid worry and stress surrounding the news headlines. It is important to remember that a lot of these headlines are often misleading and do not paint an accurate picture of the market right now. While it may feel uncertain it’s important to understand that these situations are often temporary and not without solutions. Fairview Financial are still helping clients every day because, despite the BOE rate increases many are finding that the mortgage is still affordable. Ultimately, it is not always about the rate percentages (as scary as they are becoming lately) it is about whether or not you can still afford the monthly repayments. This is where we can help guide you.
SPEAK TO AN ADVISER
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage. You may be charged a fee for mortgage advice. The precise amount will depend on your circumstances.