On 2 August 2018, the Bank of England raised the interest rate for only the second time in a decade. The rate has risen by a quarter of a percent, from 0.5% to 0.75% – the highest level since March 2009.
This means that many mortgage customers will experience an increase in their mortgage payments unless they are sitting on a fixed rate.
Most lenders will increase their standard variable rates (which vary from 3.99% to 4.99% with a few exceptions) from the 1st September 2018, anyone on a tracker scheme will also experience the 0.25% increase then (if not with immediate effect).
The Base Rate increase of 0.25% will mean a mortgage of £100,000 on a 25 year capital & interest basis, will increase by approximately £12 per month. The average mortgage we arrange is closer to £250000 and this would mean an increase closer to £30 per month.
The rates on offer from most lenders have not changed that dramatically so there are still some extremely low fixed rates on offer e.g. one high street lender will provide a 1.89% 5 year fixed with a free valuation and free legal fees, with an addable £995 product fee, their ‘no fees’ equivalent is also very low at 2.09% (yes no fees at all!). These are both Broker Exclusive rates and much lower than their ‘direct to the public’ equivalents.
It really is still a very good time to remortgage, whether its to get some security for you and your family, borrow extra for home improvements (or other reasons). Similar rates are available if you are moving home, whether first time buyers or homemovers.
We give ‘whole of market’ mortgage advice, having talked you through the options available form all the different schemes e.g. fixed rates, trackers schemes, discounts, off set mortgages and can also give ‘whole of market’ advice in respect of any life, critical illness, income protection or disability/redundancy cover too.
We are not some large faceless organisation (where you talk to someone different each time you ring), we are a local husband and wife team with over 40 years experience in finance and house related matters between us.
Our aim is to look after you long term, helping you make the right decisions with your finances. We thrive on recommendations from past and present clients with no outside advertising (except the referrals and repeat customers we receive).
We will look forward to hearing from you…
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up the repayments on your mortgage.