Despite continuing low interest rates, there are some experts that suggest volatility within the market following the vote for Britain to leave the European Union could continue. This means that fixing a mortgage on to a low rate before a possible shift in the lender’s standard variable rate (SVR) might be a great idea. This gives you the security of knowing that your rate won’t change in the face of a base interest rate increase during the fixed rate period.
According to recent data from CACI, the UK mortgage market is expected to see more than £89bn worth of maturities between now and the end of 2016. That means that you are not alone if your current mortgage deal is coming to a close. In fact, lenders are currently competing to continue to offer historically low fixed rate deals to customers, making it an attractive market for those looking to remortgage.
The pricing of fixed rate products is currently at an all-time low. This means that longer term fixed rates, instead of the industry norm of 2 year fixed rates, may potentially offer good value dependent on your financial circumstances. Not only could you potentially reduce your mortgage payments, a fixed rate delivers peace of mind in an uncertain climate.
It is our job to make sure you are on the most suitable deal for you, both financially and for your circumstances. Making choices between fixed, tracker and other deals can be complicated and time consuming. We are here to help, so give our advisers a call today to find out more about whether you could save money switching your mortgage.
If you’re a first time buyer, remortgaging for a better deal, or looking for a buy to let mortgage – Homeline Mortgages in Reading and Poole can help.