The Bank of England’s controversial decision to raise the base interest rate last week, for only the second time in a decade, is bound to have an impact on millions of UK homeowners and mortgage holders, especially if a fixed rate agreement is not in place with their lenders.
For those on variable mortgage rates, or homeowners whose current mortgage deal is coming to an end, there is indeed cause for concern, and action should be carefully considered as a matter of priority.
The Bank’s 0.25% rise is expected to add an extra £12 per month per £100,000 owed to a lender, and although economists believe that any further rate rise may be 12 months away, the trend is certainly on an upward trajectory and there is a lot of uncertainty about the medium term fiscal landscape because of the ongoing European negotiations. It really does make sense to be considering a longer term fixed rate deal right now – or at least discussing your options with an independent mortgage broker.
It is therefore no conscience that 10-year fixed mortgage deals have become increasingly popular, with more and more lender launching products to cater for this demographic – it is an attractive proposition for some – with lending rates only marginally above two and five-year fixed deals. HSBC currently has 2.49% 10-year fix products, while Coventry building society offer a similar deal for 2.39%
Quite how the property market will react to rising interest rates remains unclear, but what is in our control is to react to the current situation and take appropriate steps based on our own individual circumstances.
It should also be remembered that, although the market trend is towards an increase in borrowing costs, the rates currently available are still historically very low, The Financial Planning Group have access to the whole mortgage industry and are not tied to any banks or building societies, therefore we can ensure you find the perfect deal to match your personal circumstances and provide the medium-term financial certainty many families require in times of uncertainty.
Being able to offer our clients mortgage products from the whole market opens up so many more options and offers – we have more than 24 years experience in helping families find the perfect low-rate deals and ensuring that the financial side of moving home is as stress free as possible.
We can also secure mortgage deals six months ahead of your current deal expiring, as well as remortgaging with your existing lenders WITHOUT the need of detailed re-application or the necessity of updating an individual’s status – so you really should speak to Steve Padgham at The Financial Planning Group today about what options are available to you.
If you would like to speak about your mortgage or re-mortgage, please feel call Steve Padgham on 020 8614 4782 or email Steve.Padgham@fpgonline.co.uk