Help! Interest rates are rising.

When discussing mortgages, the question that everyone seems to be asking is ‘how competitive are the interest rates?’

It’s estimated that by Autumn 2022 inflation is due to hit an annual figure of 10%, this is being driven by the energy and food price increases.

The Bank of England first started increasing the interest rates in December 2021, the latest base rate increase was in June 2022, increasing the Bank of England base rate to 1.25%, having an impact on the mortgage market overnight.

If your mortgage is coming to the end of its fixed rate period in the next six months, now would be a good time to start reviewing your mortgage options. This is because it is possible to secure a new mortgage deal that will start once your current deal comes to end of its product period. The main advantage being that you’re able to secure a competitive interest rate now, before potentially increased mortgage rates in the coming months.

Lenders only have a certain threshold available of their competitive fixed rates, this means that once they’ve met this threshold, they start withdrawing from the market and less competitive deals are then available in its place. Therefore, it is important to start reviewing your mortgage options as early as possible.

One thing to note is that you could secure a new product now, with the view of completing when your current fixed rate comes to the end of its product period. If for example interest rates dropped between now and your fixed rate coming to an end – although given the current market this is very unlikely. You’re able to still shop around for the most competitive fixed rate, until your current mortgage product ends.

For a review of your re-mortgage options contact our specialist dental mortgage advisor.