Following the recent mini-budget there has been a dramatic rise in uncertainty regarding the UK economy, resulting in lenders pulling many of their mortgage products.

What to do if you need mortgage advice

If you are concerned about your current mortgage, or if you have an existing mortgage offer that has not yet completed, speak to one of our Thomas Oliver mortgage advisers. We also recommend calling our mortgage brokers if your mortgage deal is coming to an end within the next 10 months as we can review the market now, and historically lenders have honoured approved mortgage deals for up to six months.

Which mortgage lenders are removing mortgage deals?

It is naturally concerning to see so many lenders removing mortgage products from the market. The likes of Virgin Money, Skipton Building Society, Accord Mortgages, HSBC, Aldermore Bank and Hodge Bank are all removing lower rate deals from the mortgage product market. 

With fewer and more expensive mortgages available, clients are asking what are their options?

How much would a mortgage cost if interest rates rise?

Borrowed	2%	4%	Increase	6%	Increase
£100K	£424	£528	£104	£644	£220
£200K	£848	£1,055	£207	£1,289	£441
£300K	£1,272	£1,583	£311	£1,933	£661
£400K	£1,696	£2,110	£414	£2,578	£882

Based on a 25-year repayment mortgage

Source: https://www.bbc.co.uk/news/business-63046919

Find a new mortgage - What to do and when?

Firstly, don’t panic. it is important that you speak with an experienced mortgage broker to find out what your options will be, particularly if:

1. Your mortgage deal has ended, and you have moved to a Standard Variable Rate

If you are either currently on a Standard Variable Rate or will move to a Standard Variable Rate mortgage imminently, then the likelihood is that you will be paying a higher amount each month than if you were on, for example a Fixed Rate mortgage. If you are worried about your monthly repayments, then it is important you speak with a mortgage broker to determine a mortgage product that suits your financial needs. 

Our Thomas Oliver mortgage broking team will be able to support you by finding the mortgage most suitable for your financial circumstances. 

2. Your current mortgage deal is ending within 1 – 6 months

If you are close to the end of your existing mortgage deal and will move to a higher Standard Variable Rate when it ends, now is the time to act. Your Thomas Oliver mortgage adviser will consider the latest mortgage offers and will present you with mortgage options at current interest rates. Arranging the mortgage offer now will prevent you from moving to the higher costs of a Standard Variable Rate mortgage. 

If you secure a mortgage offer now, it will be held for 6 months. During the final 6 months, if better rates became available, you do not need to take up the offer. 

Speaking to a mortgage broker now will ensure you can have access to a wide range of mortgages that can be reviewed throughout the next 6 months. 

3. Your mortgage deal ends in 7 – 10 months 

Pre-planning will be helpful to determine your options when changing mortgage products. Our mortgage brokers can help calculate any early settlement fee on your existing mortgage then compare this against any savings that could potentially be made from having a lower interest rate during a time of instability and possible further future bank rate base rate increases. 

This is important as a mortgage adviser can assess if any savings can be made if the interest rate rises further.

In addition, this period can help provide the time for our mortgage brokers to assess and review the mortgage products available in order to take advantage of the most appropriate product quickly.

Are future interest rate rises likely?

It is possible, although not certain, that interest rates will continue to rise over the coming months. We recommend that our clients review their current mortgage deal now.

A mortgage review will determine which available products will be most suitable to meet your specific needs and help to limit the impact of any potential interest rate rises.

It is always worth remembering that an experienced mortgage broker has access to a range of mortgage and remortgage products that are not always available on the open market. It is possible that we will be able to find a mortgage for you that you will not have seen during your own research.

Richard Rushworth, Mortgage Broker in Brentwood & Hertford said:

“We have seen a wide range of lenders pulling many mortgage products from the market in last few days. This has naturally had an impact on our clients looking to remortgage as they have access to fewer and more expensive mortgages.

If you need to remortgage soon, anywhere between 1 to 10 months, and you want to use a local mortgage broker we strongly recommend calling us on 01707 872000 so we can find the most suitable mortgage product for you.”