Suppose you have a mortgage due for its product end date within the next 6-7 months. We recommend that you act now.
This coming week, we will see the next inflation announcement (21 June), and the monetary policy committee will meet to review the bank’s base rate (22 June). It is widely speculated that we will see an increase in the base rate as a reaction to the inflation announcement. Some lenders may have already repriced in anticipation; however, if you react quickly, you may be able to secure a rate prior to any further increases.
The current situation in the mortgage market in the UK is characterised by generally increasing product pricing and the withdrawal of products at short notice. These actions are a response to the high level of inflation in the country. Lenders have experienced surges in applications, and the increased rates for fixed-rate mortgages have been influenced by increasing swap rates.
According to data from Moneyfacts, which is cited in the Times, the average interest rate for two- and five-year fixed-rate mortgages has increased. The rates for two-year fixed-rate mortgages rose from 5.26% to 5.92%, while the rates for five-year fixed-rate mortgages increased from 4.97% to 5.56% in terms of interest rate decisions; the Bank of England is scheduled to announce its latest decision on Thursday, 22 June. It is worth noting that the European Central Bank has already raised Eurozone interest rates by 0.25% and indicated the possibility of further increases; this was reported by The Guardian newspaper.
If you are concerned about your mortgage payments and future increases in interest rates, MMPE can help. It is strongly advised that with rates likely to increase further in the short term, reviewing both your existing lender and open market options is essential. Equally, where necessary, we are working on reviewing and extending mortgage terms to make monthly costs more affordable.
Please do not delay a decision to review. Speaking with us to assist with reviewing options and maintain an ongoing review of rates up until completion.
If you would like to review your options, then book a meeting through the button below!
