The Bank of England announced it has increased interest rates once again, to 4.50%, marking the 12th consecutive increase in rates from the Bank of England.
This article emphasises the importance of early mortgage review and explores the potential effects of rising interest rates.
Inflation remains in double digits
UK inflation dropped in March from 10.4% in the month previous, but still remains significantly higher than the target of 2.00%.
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
As a homeowner with less than six months left on your mortgage deal, it’s advisable to start planning for the future. You may be considering whether to contact your broker at this stage, and the answer is yes – here’s why:
# 1 – Get ahead of the game
Getting ahead of the game can help you evade the risk of being locked into a higher interest rate. If interest rates continue to rise, and you wait until your current deal ends, you may end up paying more in the long run. By securing a new deal early, you can lock in a competitive rate and lower your monthly payments.
#2 – More time to research your options
Initiating contact early gives you ample time to research the market, compare rates, and find a deal that meets your needs. With six months to spare, you can thoroughly explore your options and negotiate a better deal.
“Due to the escalating cost of living, the Bank rate has risen steadily and is currently at its highest point in 14 years. The rate of inflation, which tracks the increase in prices, has remained high, partially due to the significant rise in food prices, the fastest in 45 years. “
Andrew Sheen, Thameside Mortgages
#3 – You can budget more effectively
Early communication also allows you to budget for your future mortgage payments and avoid any unforeseen surprises. You can plan your finances effectively, knowing that you have secured a new mortgage deal. With access to over 90 lenders, Thameside Mortgages can help you find the right mortgage to suit your circumstances.
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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