Is your mortgage deal coming to an end?
Over 760,000 borrowers will be considering their mortgage options as their fixed-rate deals come to an end this year.
Those with five-year deals about to expire may be anticipating sharp rises in their monthly bills; they will have fixed their mortgage in 2020, when interest rates were as low as 1.4%. Since then, rates have soared, meaning payments could increase by up to £300 a month. Although rates are significantly higher than they were five years ago, this summer saw some lenders cutting their rates as they competed for remortgage deals amid slow buying activity. In July, there were 41,800 remortgage approvals, the highest since October 2022 after Liz Truss’ mini budget.
Seek advice in times of change
In uncertain economic times, it can be challenging to determine the best course of action when your mortgage deal is nearing its end. Fixed deals are not your only option; there are tracker mortgages, standard variable rates and others which may be suited to your specific circumstances. A professional adviser can guide you through your options, enabling you to make an informed decision.
Your home may be repossessed if you fail to keep up with your mortgage repayments.
You may have to pay an early repayment charge to your existing lender if you remortgage
Sources:
https://www.thetimes.com/business-money/money/article/mortgage-prices-borrowers-rates-x90qwxn9k
