The news that the Bank of England has raised interest rates for the first time in more than a decade – from 0.25% to 0.5% – may not have come as a total surprise, however, the hike should come as a wake-up call to many home owners who could have been more protected against future rises.
Millions of UK borrowers are likely to see their interest rate go up in the coming days, whilst those who have not reserved a mortgage product through a savvy mortgage broker will also have to pay more.
The extent to which borrowers will be affected will depend on the type of mortgage you have – only half of the UK’s 11 million homeowners are on fixed mortgages, with the remainder on variable rates of one flavour or another. Undoubtedly, the biggest losers are likely to be those on variable rates whose deals track the base rates – a 0.25% rise in interest rates is likely to see the payment on a £250,000 mortgage go up by £52.08 a month on an interest only basis, or £614.996 annually
The news will be welcomed by the millions of the nation’s savers, however, a further squeeze on monthly household budgeting for borrowers is always an unwanted bi-product of base rate rises, and if you and your family fall into that category, you really need to speak to Steve Padgham at The Financial Planning Group today.
Steve has access to the whole mortgage industry and is not tied to any banks or building societies, therefore he 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.
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.
Here at The Financial Planning Group, we pride ourselves on being to offer our clients mortgage products from the whole market, which 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.
If you would like to speak about your mortgage or re-mortgage, and secure one of the record low deals that are currently available, please feel call Steve Padgham on 020 8614 4782 or email Steve.Padgham@fpgonline.co.uk