Money information website Moneyfacts have revealed new data that shows 2 and 5-year mortgage product rates have increased in the sharpest month-on-month spike since 2007. Meaning that mortgages are getting more expensive and people who don’t act now, may end up paying a lot more on their current mortgage deals.
Mortgage Rate Rises Facts
According to Moneyfact’s released data, the average overall two-year fixed mortgage rate has risen for a ninth month in a row. At 3.74%, the overall average two-year fixed rate has increased by 0.49% every month. It has increased by 1.40% compared to December 2021 which was at 2.34. At 3.89% the overall five-year fixed-rate average has also risen for nine months and is the highest on Moneyfacts’ records since November 2014. Following a monthly increase of 0.52%, this rate is now 1.25% above what was recorded in December 2021!
The average two-year tracker rate has climbed to 2.74% after an increase of 0.20% compared to last month and is now the highest recorded since June 2014. Since December last year, this average rate has risen by 1.16%, which is broadly in line with the 1.15% base rate that has gone up over this period. The average Standard Variable Rate (SVR) has breached 5% for the first time in more than 13 years, after reaching 5.06%. When compared to December 2021 (4.40%), prior to the first of the recent base rate rises, this has gone up by 0.66%. However, at 5.06%, this is now the highest Moneyfacts has recorded since January 2009 when it was 5.14%.
It is clear that there is, and will continue to be, a serious shift in the mortgage market and if you aren’t careful, you could end up getting stuck with a rate that will only cost you more and more. Now is the time to act. Not tomorrow, not next week, now. It doesn’t matter if you think that your mortgage wont be affected. You need to speak with a professional mortgage advisor who can assess your current deal and give their advice on what they think you should do to ensure that you are getting the best deal now and in the future.
What The Experts Say About Mortgage Rate Rises
Managing director at Oportolio Mortgages Oliver Whitehead is passionate about helping his clients to save money in the face of rising interest rates:
“The message we hold at Oportfolio is always that we are trying to save people money where possible all of the time and we want to make sure that they are financially secure for anything that might come their way. If rates are rising (the prediction is the base rate could be 3% by the end of 2023) on that basis, Banks will continue to put their rates up, I suspect.
It is difficult to know exactly, because if there is a recession and interest rates are put up, that grinds everything to a halt. And that doesn’t make sense to do, so it may be that rates come up and then come down again. That’s why the message is clear to us and we want as many people to know this too. Remortgage now, the sooner the better, and look at options six months ahead.
Then, that way you can get a potentially better rate further down the line than you will do if you wait and do nothing. We also need to bear in mind that a lot of people are sitting on the standard variable rate without knowing what to do because they’re not educated around what the options are. By contacting Oportfolio, we can realign your mortgage and personal protection policies to save you money and get you financially covered in a better way.”
Don’t waste time, call our office today to have a conversation with one of our friendly and helpful mortgage advisors. We will be able to go through all of your current mortgage and protection deals and make sure that you are getting the best out of your finances.