The hottest finance topic in the UK at the moment is changing mortgage rates. Will they go up? Will they go down? To many, it does seem like mortgage lenders are changing their minds on a daily basis. Just as we thought the market was recovering from the substantial rate rise at the end of 2022, some lenders are starting to raise their rates again…seemingly for no reason. The best course of action if you are concerned about rising interest rates is to get ahead of the game and start your mortgage planning nice and early. With the help of a professional advisor.
Helping Our Clients To Navigate Changing Mortgage Rates
For lots of our clients, we have been advising them to get organised with their mortgage / remortgage early – up to 6 months in advance. However, some people are currently holding back unnecessarily because they don’t have the right information and guidance. For many, when they don’t know what to do, they simply do nothing, which is definitely not the right thing to do. That is why we are on hand to help, advise and get the best results for our clients.
Before Christmas, the mortgage interest rates had been continuously rising due to the economic situation of the country and the mini-budget. So we recommended to our clients that we secure a rate as soon as possible, so to protect people against any further rises. And… here is the important bit, we promised to regularly review this. Since then, rates have been settling and coming down in most circumstances.
Therefore, we have been contacting our clients and informing them of lower rates available, and switching onto these rates as soon as they are available. This has literally saved out hundreds of pounds a month by switching to new competitive rates when we can. For one client, this meant that their monthly payment would have been £2300 reduced to £1800 – just by us keeping an eye on things and advising them.
Changing Buy-To-Let Rates
Just this morning alone Coventry Building Society have announced that they are bringing down their rates on their buy-to-let products. Here is a little breakdown of the changes that they are introducing.
Product: 2 Yr BBR Tracker
New Borrower (inc. additional borrowing): The higher of 7.0% or product rate +2.0%
Porting/TOE: The higher of 7.0% or product rate +2.0%
Remortgage: The higher of 5.5% or product rate +1.0%
All Portfolios: 5.5%
Product: Flexx for Term
New Borrower (inc. additional borrowing): The higher of 7.0% or product rate +2.0%
Porting/TOE: The higher of 7.0% or product rate +2.0%
Remortgage: The higher of 5.5% or product rate +1.0%
All Portfolios: 5.5%
Product: 2 Yr Fixed
New Borrower (inc. additional borrowing): The higher of 7.0% or product rate +2.0%
Porting/TOE: The higher of 7.0% or product rate +2.0%
Remortgage: The higher of 5.5% or product rate +1.0%
All Portfolios: 5.5%
Product: 3 Yr Fixed
New Borrower (inc. additional borrowing): The higher of 7.0% or product rate +2.0%
Porting/TOE: The higher of 7.0% or product rate +2.0%
Remortgage: The higher of 5.5% or product rate +1.0%
All Portfolios: 5.5%
Product: 5+ Yr Fixed
New Borrower (inc. additional borrowing): The higher of 5.5% or the product rate
Porting/TOE: The higher of 5.5% or the product rate
Remortgage: The higher of 5.5% or the product rate
All Portfolios: 5.5%
Speak To A Mortgage Advisor
So for those clients unsure what to do, just ask, and we can help you and talk the worry away. Our advice is still to get organised with this early, if rates rise you will have secured the most competitive one available and should hold onto it throughout the mortgage application process. If rates reduce, we will inform you and simply switch to the lower rate before you complete.
We have done this for so many clients, and we don’t need anything from you in the way of paperwork to do this – we just need your permission.
Give us a call today if you want to have a chat with one of our qualified mortgage advisors today.
