Mortgage rates could go higher

After higher-than-expected inflation numbers released at the end of May, some experts are concerned that mortgage rates will continue to rise. This is because interest rates may need to rise higher than was originally thought.

As a result of this recent data, some mortgage lenders have already increased the cost of some mortgage deals.

If you are looking to remortgage in the next six to nine months read this article for tips on what to do now. 

Need assistance getting a new mortgage deal?

If your mortgage deal is due to renew in the next six or nine months or you are paying a standard variable rate mortgage, read this article or call our Thomas Oliver mortgage brokers on 01707 872000. Our mortgage advisers will discuss how we can help you find a suitable mortgage deal.

How Thomas Oliver mortgage brokers can assist anyone needing to remortgage

Our mortgage advisers work with anyone looking to remortgage, home movers, buy to let investors and first-time buyers. We can review your current mortgage deal, assess your personal circumstances, review a wide range of mortgages from our panel, and agree a mortgage deal in principle which will often be guaranteed for six months.

If you are worried about how rising interest rates will affect your monthly mortgage payments act now: read our article or call us now on 01707 872000.

Can I renew my mortgage deal early?

We often have customers needing to remortgage who call us worried about the rising interest rates. They are wanting to know if there is anything they can do in respect of their mortgage right now if their mortgage deal renews in the next six to nine months. Although it is often penal to switch out of your current mortgage deal before the end of the term, if you contact our mortgage brokers, we can review the terms and conditions of your mortgage deal to see whether it is worthwhile.

Can I get a new mortgage deal before the current deal ends?

Whether it is worth organising a new mortgage deal before your current deal ends really depends on what type of mortgage you have taken out. If you are paying your mortgage lenders standard variable rate, your monthly payments will vary each month but will have generally been increasing as interest rates rise. As you won’t be tied into a mortgage deal you will be free to fix your mortgage whenever you want. 

Some of our customers didn’t fix their mortgage last year when their mortgage deal renewed and instead went onto their mortgage lenders standard variable rate as they were concerned at the cost of fixed rate deals. We have seen some fixed rate deals reduce in price this year, so it is worth contacting a Thomas Oliver mortgage broker to check the current cost of fixed rate deals.

However, if you have a fixed rate mortgage deal that was taken out more than a year ago the mortgage rate you are currently paying is likely to be lower than the rate the mortgage lenders would charge you now for the same product. As many of our customers have two-three-or five-year fixed rate mortgage deals they are generally paying much lower mortgage rates as they locked into deals several years ago when interest rates were lower.  

Secure a new mortgage deal up to six months ahead of your mortgage renewal date

As interest rates are still increasing and the recent data suggests they may need to rise further than was originally expected, we recommend all our customers contact us six to nine months ahead of their mortgage renewal date. 

We recommend you call us first to check your options before renewing your mortgage deal with your current mortgage lender. If we find a suitable mortgage deal, we can complete the paperwork for you and liaise with your mortgage lender on your behalf. 

Romany Yousab, our Mortgage Adviser in Nottingham said:

“Most mortgage lenders still allow you to provisionally secure a mortgage deal up to six months ahead of the date your mortgage deal renews. This is great news for our customers because they effectively ‘lock in’ to a mortgage deal, and if interest rates increase from here and mortgage lenders either pull the product or increase the rate on the product, they will normally honour the original agreement. Although you can’t change onto this deal until your current mortgage deal ends, you will have a mortgage deal ready to go when your current deal finishes.

In the meantime, if interest rates do not go up as quickly as expected and mortgage lenders start to offer mortgage products with lower mortgage rates than are currently available, our customers can change their mind and take out a different mortgage deal before their current mortgage deal ends.” 

Remember, when mortgage lenders are deciding what rate to charge on a two-three- or five-year mortgage deal they are having to look at the whole term and the expectations for interest rates a few years ahead. This is why mortgage rates on some fixed products have reduced recently even though interest rates are still going up. 

Call our Thomas Oliver mortgage broker for mortgage advice on 01707 872000

If you need to remortgage in the next six to nine months call our mortgage broking team now. It is never too early to start thinking about a new mortgage deal.

The mortgage market is complicated, and our mortgage brokers understand how it works and can offer you personalised mortgage advice.   

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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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Some buy to let mortgages are not regulated by the Financial Conduct Authority.

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