Being on top of your mortgage at this time is more important than ever and knowing what your options are and receiving advice, even if you choose not to proceed with an alternative or the advice you are given, is extremely important as this will allow you, the borrower, to make an informed decision.
The Financial Conduct Authority (FCA) recently announced that 370,000 mortgage borrowers would currently be able to save money by switching their deals. However, these individuals are highly unlikely to do so because they are not aware of the savings they could make. Many people still think it is best to stay put with their existing mortgage, even when it is likely to be rising with every single bank base rate rise.
With the cost-of-living crisis evolving and recession looming, we have noticed that some clients have become more open to a much shorter-term product right now compared to the immediate period after rates started to rise. Whereas, in the early part of the year, many clients were choosing five-year fixed deals. We are aware that the base rate is likely to rise further in order to try and bring inflation down but right now there is a disconnect between product rates and bank base rates.
If you have never used a mortgage adviser before then you may have a fear that you are going to be sold to. This is not the case, you are free to decline the advice if you wish, but the mortgage market is ever changing and at the very least just having a conversation with an adviser or firm that work within the industry on a daily basis to get their opinion, is highly advised.
For the average borrower, playing the market is a dangerous game, and no adviser can really forecast the future with any degree of accuracy. Therefore, the starting point of deciding on what type of rate to take and for how long should be based on your specific circumstances and what is going to suit you, your household and your family best.
If you would like to speak to us to find out more about how we can help find the best mortgage deal for your circumstances, please get in touch by calling 01932 943028 or email us here.
*Your home maybe repossessed if you do not keep up repayments on your mortgage.