At the start of 2018 the Bank of England was warning that interest rates would almost certainly have to rise in order to keep pace with inflation and the Government’s economic targets.
By August of that year, the threat of rising rates had receded and in the time since, partly in response to the pandemic, they’ve gone in the other direction.
According to data analysts Statista, the average 2-year fixed mortgage is now available at a rate of around 1.52%, compared to 2.54% in August 2018.
That’s obviously good news for anyone who has taken out a new mortgage, or moved their existing loan, recently. But if you’re one of the many borrowers who took out a loan some time ago, the chances are you’re now paying more than you need to and now might be a good time to review.
With London house prices being proportionally higher than elsewhere, and the average mortgage loan being consequently greater, the savings that may be available by moving to a new mortgage product could be significant.
Knowing precisely when to review and take action with regard to your existing mortgage and what that action should be is complex without expert mortgage advice.
There are many things to consider – for example, where you are in your mortgage journey, any penalties you may have to pay for exiting your current deal and the type of mortgage you might move to – but it’s worth taking a good hard look at your current deal.
It’s especially important for you to take stock of your current mortgage arrangement when you review it if you’re on your lender’s standard variable rate, which will be much more expensive than a fixed term deal (and won’t be liable for early exit fees).
The upside of fixing your mortgage for a period of years is that you’ll have certainty over your payments for the duration of the deal, regardless of what happens to the Bank of England rate.
Going through a mortgage application can be a stressful process and greater scrutiny when it comes to would-be borrowers’ finances and the affordability of the loan they require means the amount of information lenders now ask for is much greater than it used to be.
However, by working with a professional mortgage adviser like Oportfolio you can let an experienced expert take on the job of completing your application and seeing it through to a hopefully favourable decision.
The added bonus of working with someone like us is that we often have access to products and rates you won’t find on mortgage comparison sites or on the high street – and you’ll have the peace of mind of knowing that your application will be presented in a way that has the very best chance of being approved..
So, while everyone else is scouring price comparison websites to find a good deal, we’ll always be able to advise you on a wide range of options – and the fact we have personal relationships with many of the lenders we work with, we’ll be able to make sure that if any problems do crop up with your application, they’ll be dealt with quickly and efficiently.
To find out more about our friendly and professional mortgage service and what we can do to help make sure you’re not paying over the odds for your mortgage, why not call us on 020 8877 1169 for an informal and obligation-free chat with one of our expert advisers?