With inflation at a 30-year high, the Bank of England hiked the base interest rate. This influences mortgage rates, with banks increasing expenses on a weekly basis. It’s important to think about how to save money on your mortgage.
Those with fixed-rate mortgages will be protected until the conclusion of their term. Those with variable rate mortgages will be contacted by their lender before any adjustments are made to their monthly repayments.
If borrowers believe they may be unable to fulfil increased or existing monthly repayments, they must speak with their lender to explain their position.
Tips for how to save money on your mortgage
One alternative for avoiding recurring hikes is to look into remortgaging. You can do this either with your current provider or with a different one. You can also consult with an independent financial adviser who can use their expertise to find the best rates to suit your circumstances. In some instances, there’s the possibility of an early payback penalty. This may be worth it to save money on your mortgage in the long run. New lenders often enable you to lock in a new mortgage rate up to 6 months before your current contract expires. Existing providers typically offer new arrangements with only 3 months remaining.
There is mounting evidence for new homebuyers that steadily rising supply implies that house prices are levelling out after a period of remarkable expansion. This will have an impact on mortgages, with five-year fixed terms proving popular, allowing borrowers to budget more confidently and plan expenditures for the long term.
Lenders are being swamped by the amount of applications, with approval taking up to 24 days. This is increasing pressure on borrowers to acquire the most individually advantageous arrangements before rates climb again. As a result, it is critical not to put off taking action to get the most value.
Meanwhile, even at 1.25%, base interest rates are still modest compared to those impacting prior generations!
Whatever your circumstances, The Mortgage Centres are on hand to offer advice, and guidance. We’ll help you find a mortgage that’s suited to your needs.