With so many concerns surrounding Brexit, it’s not surprising that the expert’s predictions vary wildly as regards what might happen to interest rates after we leave the European Union.
Some believe that interest rates will remain stable or even fall while others believe that the cost of borrowing will rise after we leave the EU.
With the current level of uncertainty caused by Brexit, many homeowners are now looking to protect themselves against any potential interest rate rises with many borrowers seeking peace of mind by fixing their mortgage rate for longer periods
Is it time to fix your mortgage rate?
If all this speculation concerns you, you could consider re-mortgaging and moving to a fixed-rate mortgage before the UK leaves.
If you want to protect yourself against potential interest rate rises over the next few years, it may be better to go for a longer fixed rate.
Many borrowers are now drifting away from the traditional 2-year fixed term rate deals as they feel that they won’t provide them with enough security during these unpredictable times and are now considering longer term fixed deals that should hopefully provide them with peace of mind amid the chaos of Brexit.
Fixing your mortgage for a longer term will provide you with the security of knowing what your mortgage payments will be over the next three or five years, whatever changes Brexit may bring.
Is a fixed rate deal right for you?
Fixed rate mortgages are not suitable for everyone. If your circumstances are likely to change in the short term, careful consideration should be taken before making a final decision as these deals often come with early repayment charges.
If interest rates were to fall after Brexit, you could find yourself paying more than you need to.
If you want to take advantage of any potential rate reductions and if you are willing to take the risk should rates go up, then it may be worthwhile considering a tracker rate.
The mortgage market can be very confusing. Next to buying a home, choosing the right mortgage is probably one of the most important decisions you will make. Making the wrong choice about your mortgage can result in you having to pay hundreds if not thousands of pounds more than you need to pay.
Approaching your current lender or bank may not result in you obtaining the best mortgage deal because they generally only recommend their own products.
Our advisers research a comprehensive range of mortgages from across the market to find the most suitable mortgage for our clients. We only recommend appropriate mortgages after we conduct a full review of your personal circumstances
Whether you’re uncertain about the choices available to you or you are just looking for a better rate, why not challenge us to find the best deal available to meet your personal circumstances.
Our mortgage review service is completely free and there is no commitment for you to action any recommendations that we make.
However, if you choose to apply for a mortgage or re-mortgage through The Mortgage Advice Service, depending on the complexity of your individual circumstances, fees may apply. Should a fee apply, we will explain what you will be charged prior to proceeding with your application. We will charge a fee of between £0 and £235. If a fee is being charged, it is paid on the completion of your mortgage.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Consumers First Limited trading as The Mortgage Advice Service is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. Consumers First Ltd is registered in Scotland
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