Mortgage rates are on the rise
Rates and the cost of borrowing had dropped to an all-time low over the past 6-12 month, but with inflationary pressure and the likelihood of the Bank of England Base Rate increasing things are changing (source article). Whilst some lenders have still reduced the rates available for higher loan to value products, overall there has been a shift to increase deals. For example, Natwest, HSBC, Virgin Money and Nationwide have all announced increases to a lot of their fixed products this week.
Considering the cost of a mortgage has been dropping steadily in 2021 it would be sensible to view this as a natural correction, so perhaps no need to panic. However, it makes sense to secure a low rate now to protect against potential future rises. This is more beneficial you are coming to the end of a fixed rate or floating around on a variable rate. If you are planning on switching lenders you can often reserve a rate 6 months in advance, with your own lender this tends to be 3-5 months.
With 25% equity in your property you can still take a 2 year fix below 1%
With 40% equity in your property you can still take a 5 year fix below 1%
Speak to a Ideal Mortgage Advisers to run through your options and you could save money or get peace of mind with securing your payments for the next few years.
Your property may be repossessed if you do not keep up repayments on your mortgage
You may have to pay an early repayment charge to your existing lender if you remortgage