Those who took a fixed three-year mortgage out when the interest rates were low in 2020 and 2021, may need to start looking at their options as the repayments could be significantly different. For example, if you took a three-year fixed mortgage deal out at 2.5% on a £400,000 mortgage (over 25 years) the monthly repayments would have been roughly £1,794, however, a three-year fixed currently on average is 6.06% which could be £2,592 a month. This large price increase along with the cost of living has meant for some it is time to move and therefore downsize.

Start shopping around as soon as you can and the easiest way to shop around is to use a local independent mortgage advisor. They will have access to the whole market and can find the best deal for you if you are looking to remortgage.

If you are worried about monthly repayments changing quickly once again, try to fix in for longer, this way you are protected if the interest rates increase. Be aware by doing this, you may also lose out if the rate drops.

What about looking to repay for longer? Can you increase the amount of time on the mortgage to 35 years? This could bring the price of the monthly repayments down.

Alternatively, you could see what your options are regarding a tracker mortgage, just keep in mind that this could be risky if interest rates continue to increase. However, yesterday, HSBC announced they will start to bring down their mortgage rates, but unfortunately, in the same breath, other mortgage companies are looking to increase their mortgage deals, so currently, the market is mixed. The Bank Of England is expected to release a base decision on the 3rd of August 2023, so some lenders could be also holding out until then.

Call us today on 01233 501601 and we can refer you to Fingerprint Financial for a free chat surrounding your mortgage options!