One of the top stories in today’s news is our record-high rate of inflation. Just posted at 4.8% officially based on the Consumer Price Index. In a nutshell, it’s too high and must be brought under control.
Naturally, our clients are asking us how this record-high inflation is going to impact their mortgage costs. We wish there was a simple answer, but unfortunately, there isn’t. The Bank of England can do many things to bring inflation under control, one of these is to increase the base rate which often will filter down to mortgage rates.
Whilst mortgage rates (with the exception of base rate trackers) are not intrinsically linked to the base rate, history would indicate that mortgage rates will generally increase following a base rate rise. This is certainly true of the increase to the base rate we saw at the end of 2021.
What can you do now if you’re worried about mortgage rates increasing?
It may be possible to secure your next mortgage a long time before you’re due to leave the beneficiary period of your current deal. It’s possible to fix a rate as much as 7 months in advance in fact. Here at Advantage FS we will get back in touch with our clients around 6 months before the deal is due to end. We never charge a fee to remortgage a property we have previously mortgaged so it’s a great benefit of our service.
If your mortgage rate is due to expire later this year then why not get in touch now to get your next mortgage locked down!