Are the Best Mortgage Deals Disappearing?
2 minute read
The past 12 months have seen the mortgage market inhabited by some of the best deals in recent years. Homeowners and landlords have benefited from astonishingly low interest rates, falling as low as 1%. However, as with all favourable rates, it is anticipated that these rates could soon start to rise. As this is written, interest rates remain low however, money advisers are now recommending that borrowers look to make the most of it as quickly as possible.
How to Prepare for the Rising Interest Rate
Many homeowners, particularly at an early stage have never experienced an interest rate rise, so it represents an unknown quantity in the way they manage their finances. How then can they prepare for a possible interest rate rise? It is vitally important that applicants manage their finances correctly, and that their monthly outgoings are manageable in accordance with the extra money that will be coming out of their account each month. It may be prudent to consider switching to a fixed rate if possible as this may offer you the best opportunity to give you security over potential rate rises. Alternatively, if happy to be on a variable rate a cheaper deal may still be on offer. If the prospect of a higher interest rate is one that is of concern to you, then switching to a more beneficial deal could be a sensible solution.
The Experts’ View
With the revised focus on a possible rate rise anticipated to be early next year, combined with the very attractive interest rates on offer from lenders, more rate savvy customers are starting to see the benefit of reviewing their current loans. With lending targets still to be met by many banks and building societies we continue to see rates tweaked to ensure they pick up their market share. Continued competition and historical low mortgage rates mean that it has perhaps never been a better time to secure a new deal. If you would like to discuss how Just Mortgage Brokers can help with your mortgage needs, get in touch today.