What does today’s interest rate rise mean for your mortgage payments?
Thursday 3 February, 2022
Gulay Dugunyurdu, financial adviser and mortgage broker in Enfield, North London and Hertfordshire reviews how the interest rate rise will affect mortgage payments in 2022.
On Thursday 3rd February the Bank of England increased UK Interest Rates for the second time in a month. The rate increased to 0.5% from 0.25%. If you have a variable mortgage product you will pay more interest, but for anyone on a fixed-rate mortgage product their monthly payments will remain the same, until their fixed rate mortgage ends.
As inflation increases and interest rates rise now is the time to review your spending
With many people now settled back into their working routines now is a good time to review your spending and start thinking about your mortgage repayments. Today the Bank of England increased interest rates again, having increased them from 0.1% to 0.25% in December. With inflation still at an all-time high I wouldn’t be surprised if we don’t see further interest rate rises throughout the year, so be prepared and review your mortgage.
If you are due to re-mortgage, get an offer now as it lasts six months
If you are due to re-mortgage, call us now on 01707 872000 for expert mortgage advice. As interest rates have risen again, it is important that anyone with a mortgage which is coming to an expiry re-fixes or remortgages as early as possible.
Remember mortgage offers last six months so you can approach your Thomas Oliver mortgage adviser six months before your fixed rate expires. As a result, you will be able to lock in a mortgage rate up to six months beforehand, so any future interest rate rises won’t impact your circumstances. Getting prepared early can really save you money and allow you more disposable income.
Gulay Dugunyurdu, financial adviser and mortgage broker in Enfield, North London and Hertfordshire said:
‘Overall I think it would be naive to ignore the potential of interest rates going up again in the future especially with inflation at its current level. As a result, if you can save money on your mortgage this can help pay for the additional cost of food, and electricity and gas bills. You could also use the money you save to purchase protection insurance for you and your family, which you may have put off buying in the past due to the cost. It may even be worth checking your mortgage options now if your mortgage rate isn’t going to expire soon just in case you are on a higher rate. With rates so low now it may still be beneficial to pay an early redemption charge and cancel your existing mortgage agreement and still save money. If there is one message to remember from this article it is to please review your mortgage and get in contact with one of our mortgage brokers on 01707 872000, because it pays to be prepared.’
If you are looking to re-mortgage, or you are a first-time buyer, or looking to purchase buy-to-let investments or move home in 2022, call our Thomas Oliver mortgage broking team for personalised mortgage advice. Don’t delay getting mortgage advice. Get a mortgage offer today and it will last for six months so you have time to make decisions.