Do you have 6 months left on your fixed rate mortgage? It’s time to act

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If you have a fixed rate mortgage and your current contract is ending in the next six months, you can consider getting a new mortgage now.

Many borrowers make the mistake of thinking they have to wait until their current mortgage contract ends before getting a new loan.

It’s not, and talking to your mortgage broker up to six months before your end date is the best way to ensure you don’t slip on a lender’s standard variable interest rate, which could be more expensive.

In recent weeks, banks and building societies have increased the cost of their fixed rate mortgages and released new offers for very short terms.

Lenders are already factoring in expected future interest rate hikes by the Bank of England and pricing their loans accordingly.

This makes securing a new fixed rate mortgage deal a difficult and fast-paced market for borrowers.

The Bank of England has already raised interest rates three times in recent months, from their pandemic low of 0.1% to 1%.

The Monetary Committee will meet again on June 16, 2022 to decide whether to raise it further and, even if it decides to maintain rates that month, the long-term outlook is that the cost of borrowing should increase.

This means that if you wait until your existing mortgage contract is over, your new fixed rate mortgage could be more expensive than if you got a new deal now.

With changing prices and increasingly cautious lenders, it can be very important to hire a mortgage advisor.

Not only can they find you the cheapest loan deal, but they will also help you prepare your application to mitigate any potential issues that may arise with your application, which is especially important if your finances have changed since you took out the loan.

Furnley House’s team of experienced mortgage advisers are on hand to help. To find out more, visit www.furnleyhouse.co.uk, or have a first free conversation, call 0116 269 6311 or email [email protected]

All information correct at time of writing. Your home can be repossessed if you don’t continue to pay your mortgage.

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