Are you prepared for the interest rate rise on your mortgage?
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David Treharne[/caption]
For the first time in five years, industry experts have admitted that there is a growing chance that we will see a base rate rise within the next six months. And, after the vote was declared ‘no’ for Scottish independence, some have suggested that there could even be a rise before the end of this year, though this remains unlikely.
Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, answers the all-important questions on every homeowner and prospective buyer’s lips, giving you the facts you need to decide what to do with your mortgage before interest rates rise.
With these mixed messages surrounding the rise, borrowers are left wondering what would happen if they were to buy a house or remortgage before the end of the year. Considering whether now is the time to fix or remortgage is a question that many are asking in the midst of current market conditions and with rumours of interest rate rises certain to become a reality.
“The obvious answer to that question depends on your individual circumstances and you should always seek advice from a professional adviser when deciding,” said David Treharne from Mortgage Advice Bureau.
“If you are currently running on tight funds and are on a variable rate, then you may find it difficult to manage with any increased monthly payments when rates rise. Remortgaging to a fixed rate will give you the reliability and peace of mind of having to make the same payment each month.”
Those with a low variable rate however, should consider staying with their current mortgage deal if they are able to afford the effect of some of the rate rises to come.
According to a survey carried out by Principality Building Society, only 48% of homeowners in England and Wales know what interest rate they are paying on their current mortgage.
“Taking this into consideration, it is imperative that you prepare in advance when making the choice on what to do. Find out what mortgage deal you are currently on and what interest rate you are currently paying over how many years. Start this process approximately six months ahead of when you are looking at the possibility of changing, rather than leaving it until the last minute when rates have already increased,” concluded David.
For further information please contact David on 07501 720320 or email davidtr@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk
There will be a fee for mortgage advice, which is dependent on your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.
David Treharne[/caption]
For the first time in five years, industry experts have admitted that there is a growing chance that we will see a base rate rise within the next six months. And, after the vote was declared ‘no’ for Scottish independence, some have suggested that there could even be a rise before the end of this year, though this remains unlikely.
Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, answers the all-important questions on every homeowner and prospective buyer’s lips, giving you the facts you need to decide what to do with your mortgage before interest rates rise.
With these mixed messages surrounding the rise, borrowers are left wondering what would happen if they were to buy a house or remortgage before the end of the year. Considering whether now is the time to fix or remortgage is a question that many are asking in the midst of current market conditions and with rumours of interest rate rises certain to become a reality.
“The obvious answer to that question depends on your individual circumstances and you should always seek advice from a professional adviser when deciding,” said David Treharne from Mortgage Advice Bureau.
“If you are currently running on tight funds and are on a variable rate, then you may find it difficult to manage with any increased monthly payments when rates rise. Remortgaging to a fixed rate will give you the reliability and peace of mind of having to make the same payment each month.”
Those with a low variable rate however, should consider staying with their current mortgage deal if they are able to afford the effect of some of the rate rises to come.
According to a survey carried out by Principality Building Society, only 48% of homeowners in England and Wales know what interest rate they are paying on their current mortgage.
“Taking this into consideration, it is imperative that you prepare in advance when making the choice on what to do. Find out what mortgage deal you are currently on and what interest rate you are currently paying over how many years. Start this process approximately six months ahead of when you are looking at the possibility of changing, rather than leaving it until the last minute when rates have already increased,” concluded David.
For further information please contact David on 07501 720320 or email davidtr@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk
There will be a fee for mortgage advice, which is dependent on your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.