Remortgage before more lenders increase their rates.
When an increase in the base rate occurs, mortgage and remortgage providers can be quick to reflect the rise in their SVR’s.
Santander’s SVR increase, for example, came into force on 3rd September. Customers sat on the bank’s variable rate will have found themselves paying 4.99% instead of 4.74% from that date. Their follow-on rate was also increased to 4.00%.
Santander isn’t alone in passing on the rise to their customers as a number of other lenders have also followed suit. Your bank could be one of them and you could be feeling the effects of finding the extra to pay an increased repayment.
It’s estimated that 1.5 million borrowers UK-wide have tracker mortgages connected to the base rate. If you fall into this category, you could be paying than necessary. By seeking professional mortgage advice from Deal Direct, you may find that another product that:
- is more affordable
- suits your circumstances better
Opting to remortgage now could not only save you money but could also safeguard your bank account from future rate rises. By switching to a lower fixed rate, your payments won’t fluctuate for the duration of the term. In some cases, this fixed term could last up to as much as 10 years.
Mortgage providers are very swift to respond to rate rises and pass in increases. As they are reluctant to pass on savings when the rates drop, the best course of action is to secure a low-rate now while they still available.