Switch ‘n Save
The Bank of England has recently increased the base rate from 0.25% to 0.5%, which follows the rise from 0.1% to 0.25% in December 2021.
Interest rates on new fixed mortgages tend to increase when the base rate rises, as banks have to pay more to borrow money. In fact, Nationwide announced an increase to their standard variable rate of 0.25% within hours of this latest announcement from the Bank of England. This means that the annual cost of average new mortgage could increase by £650 a year.
This will affect those people who are on variable rate deals of some kind, approximately 2 million households in the UK, many of whom will already have seen their mortgage repayments increase. And it will also affect those whose fixed rate mortgages are going to be ending over the next few months.
So remortgaging could provide a good opportunity to save money. Some individuals will be able to save over £2000 a year, just by switching their lender. It’s always worth reviewing your current situation to see if you could save yourself some money by switching.
The sooner you act the more likely you’ll be able to secure a better rate as mortgage offers and rates are constantly changing.
Mortgage advisers can access far more rates than private individuals can and can also offer advice about fees and affordability.
Review your budget
Look at all your income and outgoings and see if there are opportunities to save money to allow for a higher mortgage payment.
If you can afford it, overpaying your mortgage is a great way to reduce the amount on which you are being charged interest.
For more advice on mortgages and or re-mortgaging an existing property please call Louise Lewis at smarthomes on 0121 744 4144 opt 2.
If you’d like to find out how much your home is worth call smarthomes for a realistic valuation on 0121 744 4144 opt 2.
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