Last month, the Bank of England base rate rose again to 5%. This is the 13th consecutive rise since December 2021, with the aim of slowing down inflation. There are a huge number of clients coming to the end of their current fixed deals this year, and many on tracker rates, whose payments will have been increasing with every base rate change. If you are one of these people, you will be facing some difficult financial decisions. You may have chosen a tracker when base rate was much lower, or perhaps made use of the stamp duty holiday and stretched yourself further than you may otherwise have done, and are now unsure of what to do.
Don’t bury your head in the sand! As daunting as the situation may be, it will only become worse if ignored.
Speaking to an adviser is more important than ever. We can discuss your options for refinancing, whether that be through a remortgage or product transfer, or perhaps looking to consolidate some of your other debts to make the overall monthly payments more manageable for you. Lenders are being particularly innovative at the moment, to try to assist clients through the current climate. We are whole of market, so will source all options to try to find a suitable solution for you. If you are looking to purchase a property, we can also discuss options which may enable you to buy a property, such as low/no deposit deals, shared-ownership or lenders who allow relatives to assist with affordability on the mortgage, without being named on the property deeds. Even if you have looked into a mortgage recently and been unsuccessful, it is still worth talking to someone as products and criteria are constantly changing.
There’s no need to hold off or “wait and see” what happens with the market, particularly if you are coming to the end of an existing deal! You may not be aware that many (although not all) mortgage lenders will allow you to switch to another product before completion. This means that we could apply and secure a rate for you now, but would continue to monitor the lender’s products, and should they reduce their rates, switch you to a cheaper deal prior to completion. There’s a lot of scaremongering in the news at the moment about rates increasing, but don’t let the headline rate deter you. We will try to find an affordable solution for you!
If you are struggling to pay your current mortgage payments or other debts, contact your lender and/or supplier sooner rather than later to discuss your options.
Your lender may allow you to extend your term or temporarily switch your mortgage to interest only, with no impact to your credit score. Please ensure you fully understand the consequences of any changes before proceeding.
If you would like to see how we can help you, give us a call on 01702 538800 or email enquiries@ingard.co.uk
