Interest rates are accelerating. Do you need to keep an eye on your mortgage? Review it now…
18/05/2022
18/05/2022
The sharp increase in interest rates and higher living costs could mean you’re feeling unsettled around your future finances, and especially given the increasing National Insurance contributions and escalating energy costs, it may seem that financial challenges are just around the corner.
Inflation has soared to 7%1 – the highest level for 30 years2, resulting in a knock on effect on interest rates. In March 2020 interest rates stood at 0.1% 3. In recent months they rose from 0.5% 4 to 0.75% 5 in March of this year. This was the third rise in four months. The latest interest rate decision is due on 5th May 6 and could see interest rates go up even further if prices continue to rise, and there is a demand for a raise in wages to meet inflated living costs. If this happens, the Office for Budget Responsibility (OBR) 7 has warned that the rate could hit 3.5%.6
If you are on a standard variable rate interest (SVR) or a tracker mortgage, your existing mortgage repayments may increase, and if you’re exploring new mortgages, you will need to hurry, as finding the great deals of the last few years are becoming increasingly more difficult. Many lenders now have a stricter lending criteria which could become even more stringent as the economy hits greater uncertainty.
If you’re looking to re-mortgage and you’re on an SVR or tracker mortgage, the best advice would be to do this quickly as looming interest rates rise could limit your options.
If you’re unsure as to whether to act now or ride the storm and wait, Lloyd & Whyte can help you navigate your way through these uncertain times. If the myriad of options available to you such as long-term fixed rates versus short term fixed rates and so on fills you with confusion, we can guide you on the best choice for your specific circumstances.
That’s why it’s worth reviewing the competitiveness of your mortgage.
We specialise in independent financial services, so we have access to a large panel of mortgage lenders to find the right mortgage for you.
Whether you’re buying your first home, re-mortgaging your current residence, investing in a buy-to-let, or managing your property portfolio, our qualified mortgage advisers are here to help.
To book a consultation with one of our qualified mortgage advisers please call 01823 250750
or
Complete our mortgage advice request form here and we will contact you to book an appointment at a time that is convenient for you.
Lloyd & Whyte (Financial Services) Ltd are authorised and regulated by the Financial Conduct Authority. Registered in England No. 02092560. Registered Office: Affinity House, Bindon Road, Taunton, Somerset, TA2 6AA. Your home may be repossessed if you do not keep up repayments on your mortgage.