Is it Better to Fix Your Mortgage Now?
With the imminent rise in interest rates, those thinking of re-mortgaging need to act now to get the best deal as many lenders are removing their lowest priced products off the shelves.
The reason for the rise in interest rates is that it is costing lenders more to access the funds they need to lend out to borrowers, namely swap rates. It is predicted that the Governor of the Bank of England could raise rates on 2 November.
The rises vary between lenders, with NatWest, for example, ranging between 0.02%-0.9%. Yorkshire Building Society has a reputation for its amazing low rates with a two year fix at just 0.99% and its five year fix at 1.55%. However, they have recently announced that these deals will no longer be available. As time is running out, other lenders are jumping on the bandwagon as they frantically pull their bargain basement deals.
According to London and Country Mortgages, anyone taking out a two year fixed rate mortgage from Barclays, and borrowing £125,000, will pay an extra £11.48 a month.
Victoria Marshall, Conveyancing Solicitor at Pearsons commented, "we have all been watching the Bank of England very closely as to when rates will eventually be increased. It appears the move may be imminent so those considering a re-mortgage or even purchasing a new home, should speak to their advisers now. We expect an influx of instructions as people try to fix their rates for the foreseeable future"
If you are looking to buy a house, call our specialist Conveyancing Solicitor, Victoria Marshall, on 0161 785 3500 or email firstname.lastname@example.org.
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Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.