With the rate of inflation at a 40-year high and the Bank of England set to raise the base rate of interest again its easy to see why the cost-of-living crisis is dominating news headlines. We are all aware of how much extra we are having to spend each month on things like food, petrol, and other day-to-day essentials.
The cost of living is expected to rise even further over the coming months with experts predicting inflation, currently at 10%*, to rise even further later in the year making future planning when it comes to your finances even more important.
As inflation continues to rise the Bank of England has been increasing interest rates to try to tackle inflation, this means many people also seeing the cost of their monthly mortgage payments going up as well.
Interest rates have increased throughout the year leading to fixed rate mortgage interest rates now being at a 15-year high according to Moneyfacts. Though with further interest rates rises expected from the Bank of England, more and more people are expected to switch their mortgage from a variable rate to a fixed rate to help plan household budgets.
A mortgage is most people’s biggest financial commitment, and while you may not be able to do anything about other costs rising, there are some precautions you can take to help limit the impact on your biggest monthly outgoing, your mortgage.
Many people don’t realise you can review your mortgage up to six months before your re-mortgage is due and lock-in a new rate then, beating any future interest rate increases before the end of your current deal. By seeking expert mortgage advice and allowing plenty of time it could help you secure a better deal compared to leaving it to the last minute when your current deal is about to expire.
It is really important, now more than ever, that you regularly review your mortgage to ensure you have the best deal that suits your circumstances. Being aware of your current mortgage deal and when it is due to end will help put you in a much better position to get the right deal for your circumstances when it’s time to re-mortgage. If your current deal is due to expire, or if you have any concerns regarding your mortgage, please contact us. Our expert team of advisers are happy to help.
*Figure on 17.08.22