Since the start of this month and following the Bank of England’s latest rate hike, the average interest rate on a two–year fixed mortgage has increased by 0.14% to 4.09%. The first time it has hit 4% in almost a decade.
With UK mortgage rates increasing at their fastest pace in a decade, up go the mortgage payments of the many households who are not on a fixed deal. If you’re on a standard variable rate, you may have already experienced a rise in your mortgage payments since the Bank of England rate increase was announced.
If you are a homeowner coming to the end of your current mortgage deal, you may want to lock in a rate early. Typically, mortgage lenders will inform borrowers of new offers 2-3 months before the end of their existing fixed term, but you could act much sooner than this and lock in a better rate, up to 3-6 months in advance.
It may be worth finding out whether it would be beneficial moving onto a fixed deal now before potential further rises occur or even checking the market for a better deal than the one you’re already on. Our B Mortgage Services team are on hand to discuss any queries you may have regarding obtaining a fixed rate mortgage, re-mortgaging, moving home and more.