Lock into a new deal now before mortgage rates rise.

The era of record-low mortgage rates is predicted to end as the Governor of the Bank of England has recently indicated that interest rates are likely to rise by this time next summer. Lenders are expected to take this news from Mark Carney seriously and begin a review of their pricing strategies.

As a result, the market is preparing itself for a swing towards switching mortgages sooner rather than later. Savvy homeowners should, therefore, be seeking expert advice now from Deal Direct about locking into a new mortgage deal.

Record low rates are still being offered for 2, 3 and 5 year deals, but how do you make the choice between them?

2 year fixed rate mortgages may offer the cheapest rates right now, however, consider the timing of the end of your deal as this will coincide with the UK’s planned departure from the European Union. Anything could happen between now and then but the Bank of England are predicting that interest rates will rise until at least 2020.

It’s possible that a 5 year fixed rate mortgage could be your best option, however, depending on your circumstances, a 10 year fixed rate mortgage may suit your purposes better. This type of fix could safeguard your pocket against any fluctuations in mortgage rates, however, you must ask yourself how likely it is that you will move in the next 10 years. If the possibility exists, is the mortgage portable or not, as early redemption could mean you face a hefty penalty?

If you are one of the estimated 3 million homeowners sitting on their lenders’ SVR right now, call Deal Direct today to discuss how you could lock in to a new deal now before the rates increase. 

For impartial mortgage advice, call 0800 048 8828.