Six Months Left on your Fixed-Rate Mortgage? It’s Time to Act.

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May 26, 2022 - Furnley House

Six Months Left on your Fixed-Rate Mortgage? It’s Time to Act.

If you are in a fixed-rate mortgage and your current deal ends within the next six months, you can consider securing a new mortgage arrangement now.

Many borrowers make the mistake of thinking they have to wait until their current mortgage deal comes to an end before they secure a new loan. This is not the case, and talking to your mortgage broker up to six months before your end date is the best way to ensure you don’t slip on to a lender’s standard variable interest rate, which could be more expensive.

In recent weeks banks and building societies have been raising the cost of their fixed-rate mortgages, and releasing new deals for very short amounts of time.

Lenders are already factoring in expected future rises in interest rates by the Bank of England and are pricing their loans accordingly. This is making securing a new fixed-rate mortgage deal a difficult and fast-moving market for borrowers to navigate.

The Bank of England has increased interest rates three times in recent months, from their pandemic low of 0.1 per cent up to 1 per cent. The Monetary Committee will meet again on the 16th June to decide whether to increase it further and, even if they decide to hold rates that month, the long-term outlook is that the cost of borrowing is expected to rise.

This means that if you wait until your existing mortgage deal comes to an end, your new fixed-rate mortgage could be more expensive than if you secured a new arrangement now.

With prices moving and lenders becoming more cautious, using a mortgage adviser can be really important. Not only can they find you the cheapest loan deal, they will also help to prepare your application to ease any possible problems that may arise with your application, and this is important if your finances have changed since you originally took out the loan.

Mortgage advisers have been working throughout the Covid-19 pandemic to help arrange new mortgage loans for those who have had unexpected changes to their finances. If you are worried that your circumstance have changed then a conversation with an adviser may put you at ease.

A good mortgage adviser will also have wide experience working on mortgage applications from the self-employed and from those looking to re-finance their mortgage in order to fund a renovation project on a property. They work with mortgage underwriters on a daily basis, so they know which lender to best place an application with, and will handle any questions that may arise from a mortgage underwriter about your loan application.

 

Getting good mortgage advice.

Our team of highly experienced mortgage advisers at Furnley House are here to help. To find out more, or to have an initial free conversation call 0116 269 6311 or email info@furnleyhouse.co.uk

 

All information correct at the time of writing.

Your home may be repossessed if you do not keep up repayments on your mortgage.