"Important to speak to a mortgage broker to find the best deal possible in the current market"
Are you one of almost two million households due to see fixed rate mortgage deals come to an end this year, and facing the likelihood of bigger monthly payments? If you are, now is the time to speak to a mortgage broker.
“Mortgage brokers really are worth their weight in gold right now, helping home buyers to secure the best mortgage rates,” said James Kear, Preston Baker’s Head of Financial Services.
“We know there are many people who will see their fixed rate mortgages come to an end soon, and it’s important to speak to a mortgage broker to find the best deal possible in the current market.
“Deals under 4% available”
“While 2022 was a very challenging time with rates changing almost daily, all signs now show the market is stabilising. There are fixed-rate mortgage deals currently available for under 4%.”
Whereas in the region of 20% of residential mortgage holders have variable or tracker loans, which means their monthly repayment increases whenever the Bank of England increases its benchmark interest rate, fixed rate mortgages are different. The monthly payment remains the same for the length of the deal, which is normally two or five years. Around 78% of mortgage holders (about 6.5 million homeowners) have this kind of mortgage.
“When fixed rate mortgage deals expire, borrowers automatically move onto their lender’s standard variable rate (SVR), which is likely to be much more expensive,” said James.
“Get the best deal available”
He added: “It is thought that 1.8 million fixed deals will expire this year, and at that point the majority of borrowers will take out a new fixed-rate mortgage. A mortgage broker will help ensure they get the best deal available.
“When you think that a typical homeowner that has an average tracker deal now pays nearly £400 more each month than in December 2021, which was when rates began to increase, it really is worth shopping around.”
Need help with a mortgage?
If you need help with a mortgage, or are looking to remortgage, then please contact Preston Baker Financial Services.
With access to over 80 mortgage lenders, our experienced team of advisors will find the right mortgage for you, and provide expert support and guidance throughout your home buying or remortgaging journey.
Contact Preston Baker Financial Services now.