It is widely predicted that the recent rise in interest rates will not be the last. Economists , politicians and experts are saying that in order to attempt to try and kerb inflation, interest rates will most probably need to rise again, with some predicting rates to hit around 2% by the end of 2022.
The good news is that if you currently have a mortgage and are in a fixed rate then, for now at least, you won’t be affected. Having a fixed rate mortgage means your monthly payments are fixed and will not change for the term of that fixed rate. However at the end of that term, homeowners may find the new deal offered may be more costly.
Many homeowners are looking at ways to switch to a longer fixed rate deal early so they can lock in their outgoings now. For those considering doing this, may find that there would be a penalty fee for moving their mortgage before the end of their term and we would always advise discussing your options with a qualified broker to fully understand if this is an option for you.
If required, we would be able to put you in touch with our recommended mortgage experts at Mortgage Plus who would be happy to offer some free initial advice.
Until next time,