Interest rate rises will happen, the only doubt that everyone has in their mind is when would it be. The Bank of England hinted in February that this could happen as soon as May. We have seen the market predicting a 0.25% increase within the next 6 months and some economists believe that the Base Rate will certainly hit 1% in 2019.
With this in mind, it is only natural to turn our attention to the biggest debt in any household: the mortgage. According to the Bank of England, 62% of all mortgages are on a fixed rate and, if you have previously applied for a mortgage through Homeline Mortgages, we will contact you in advance to review your financial situation.
However, there is a hidden cost that not many people mention when talking about interest rate rises: unsecured debt. This is credit cards, personal loans and any other debt that is not secured against your house. This kind of lending is less reactive to interest rate rises, as this market takes more time to react and adapt its products.
However, the consequence of this kind of debt rising due to higher interest rates will mean that your household finances might be stretched. The average adult in the UK has £3,975 of unsecured debt and Citizens Advice dealt with more than 2,700 new debt problems every day in December.
One of our advisers, Oliver Bishton, recently dealt with a client that was able to save nearly £2,000/month on monthly payments when consolidating his unsecured debt into his mortgage loan, receiving excellent feedback for the service provided:
“Oliver, just a short note to thank you for your professionalism in turning around the resi so quickly. Having been in finance for 24 years, I have been very impressed and will have no hesitation in making recommendations to you”
This is definitely a conversation worth having to find out whether this might the best option for you.
If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth