Recent speculation over the possibility of a rise in interest rates earlier this year may have proved unfounded, but research by uSwitch showed it did lead to some of the big mortgage lenders moving to increase the rates on their most popular mortgage products.
In April, The Guardian reported on the research by the comparison website which found the average mortgage rate has increased 0.25pc since last month, leaving customers with a UK average mortgage loan of £175,000 paying around £44 a month more than they were before the Bank of England raised interest rates in November.
And in London, of course, where average house prices and lending generally far outstrip the UK equivalents, those additional payments may well be significantly greater.
The research also revealed that the average 2-year fixed mortgage rate has now reached 2.5pc – the highest it has been since July 2016.
Among the lenders to have upped their rates in anticipation of a further Bank of England rise to 0.5pc in May are Barclays, which has changed around 60 products.
Bank of England Governor Mark Carney moved to play down talk of a rise in June without directly ruling it out – but has admitted in recent months that further increases in the base rate may be inevitable in order to keep the UK economy on track, leading some economists to forecast a further two rises between now and 2020.
Knowing precisely when to take action with regard to your existing mortgage and what that action should be is complex without expert mortgage advice, but the recent flurry of activity among the UK’s lenders does suggest a strong possibility of imminent changes to the Bank’s base rate.
For anyone not locked into a fixed-rate deal, that may entail higher repayments.
If you’re currently on a variable rate or coming to the end of a fixed rate deal, then it may be prudent to seek advice on what benefit there may be in moving to a new fixed rate mortgage.
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.
The downside is that fixed deals tend to be more expensive, meaning higher monthly repayments in return for future-proofing your mortgage costs.
At Oportfolio, we’re mortgage experts and we can access mortgage products that aren’t available on the High Street, meaning that 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.
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 visit www.oportfolio.co.uk or give us a call on 020 7371 5063.
Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity