The recent 0.25% increase in The Bank of England’s base rate – the first increase since July 2007 – has had an immediate impact on the monthly payments that many borrowers are making on their mortgages if they have variable or tracker rates.
If you are already on a fixed rate, nothing will change until you reach the end of that fixed rate term, although it is possible that the options that are then available to you might be at a higher rate of interest.
If you are locked into an existing rate that is currently looking too high, then pop along to The Mortgage Shop to chat about the options that might be available to you by moving to another lender. It is inevitable that you will have to pay fees and also possibly a penalty, although these costs can often be added to your new mortgage, and can still result in your being able to benefit from a reduction in your monthly payments.
Time to review your finances?
The cost of borrowing has fallen so low that many people have never experienced the much higher interest rates that used to exist up to 2008. It is highly unlikely that we will see a return to those rates at any time soon, although one thing is certain and that is that rates are now going to slowly rise.
The Mortgage Shop is offering mortgage rate reviews to anybody who is concerned about the future costs their mortgage as well as advising on how to release additional equity. Do you need a new kitchen or bathroom how about landscaping the garden or building an extension, releasing equity to buy a holiday home or an investment property, or raising funds to cover university fees?
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