The Bank of England recently announced that it had increased interest rates to 4.25%.
In this article, we highlight the significance of reviewing your mortgage as early as possible and delve into the consequences of increasing interest rates.
Unexpected Increase in Inflation
In February, UK inflation unexpectedly rose to levels deemed “dangerously high” by Chancellor Jeremy Hunt, which fueled expectations the Bank of England were going to increase interest rates once again.
The Office for National Statistics reported that the annual rate of consumer price inflation increased from 10.1% in January, surpassing the 9.9% forecast made by the BoE.
This increase in interest rates is aimed at curbing inflation and ensuring the stability of the economy. It is also designed to encourage saving and discourage borrowing, which can help slow down the pace of inflation. Homeowners with variable-rate mortgages and other types of debt will likely see their monthly payments rise as a result of this increase, so it’s important to keep an eye on your finances and adjust your budget accordingly.
Secure Your Mortgage Early
If you’re a homeowner with less than six months left on your mortgage deal, it’s time to start thinking about what comes next. You may be wondering whether it’s worth reaching out to your broker at this stage.
The answer is yes, and here’s why.
# 1 – Avoid the risk of higher rates
Securing a deal early with can help you avoid the risk of getting stuck with a higher interest rate. Interest rates have been on the rise, and if you wait until your current mortgage deal expires, you may be forced to switch to a higher rate that will cost you more over the long term. By securing a deal early, you can lock in a competitive rate that will help you save money on your monthly payments.
#2 – More time to research your options
Getting in touch early gives you more time to explore your options and find the best deal for your needs. With six months to go, you can take your time to research the market, compare rates, and find a deal that works for you. You may even be able to negotiate a better deal with Thameside Mortgages than what’s initially offered to you.
“Securing a mortgage deal when you are six months away from the end of your current deal gives you ample time to assess the market, secure a deal and still explore the market again three months before your deal ends to ensure it was the right thing to do, giving complete peace of mind. “
Andrew Sheen, Thameside Mortgages
#3 – You can plan more effectively
Early communication allows you to plan your finances more effectively. You can start budgeting for your future mortgage payments and avoid any nasty surprises that may come up if you wait until the last minute to secure a deal.
Get in Touch
With access to more than 90 lenders, you will be able to ensure you’re getting the right mortgage for your needs and circumstances.
In summary, there are several benefits to getting in touch with Thameside Mortgages early if you have less than six months left on your mortgage deal. By securing a deal early, you can avoid the risk of a higher interest rate, have more time to explore your options, and plan your finances more effectively.
Contact Thameside Mortgages today to learn more about how they can help you secure a great deal.
You can call us on 03455 120 125, or complete the form below.
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