Homeowners are being given a stern warning about imminent possible skyrocketing mortgage rate increases.

Money expert Martin Lewis handed out his advice during his ‘big briefing’ segment of his TV show, stating that “UK interest rate rises are coming and are coming soon.” “Everyone with a mortgage you need to check now if you’re on the best deal before it’s too late,” he added 

Speculation over the rise in interest rates comes after Bank of England Governor Andrew Bailey sent a signal on Sunday that the bank was gearing up to raise interest rates as a direct response to rising inflation,  taking the base rate from 0.1% to 0.25% and suggesting that UK mortgage rates may follow.

Bailey gave no indication of when the bank might increase rates from the current record low of 0.1%,  but Martin Lewis said: “They think that (a rise in interest rates) will happen in two weeks time with a prediction that in February they could go up to as much as 0.5%

This is bad news for homeowners with a tracker and variable rate mortgage – where your rates go up and down – as they’d see their mortgage bills rise in line with interest rates.

Lewis Went on to say that “Everyone with a mortgage, you need to check now if you’re on the best deal before it is too late.”

He stated that those who act now, can lock in to a fixed deal – where your rate is set for a period of time – potentially avoiding paying more.

His advice was to:

  1. Get your mortgage information together. Your rate, your type, when your deal ends, the terms and are there any switch penalties,
  2. Understand your loan to value; that is the proportion of your home’s current value that you borrow,  because many people’s house price has gone up so they’re worth more, subsequently, even if you’re borrowing hasn’t dropped, it means your loan to value may be lower which in turn means you may be able to get a better mortgage.”
  3. Once you’ve gathered the above information, speak to your mortgage broker to see what’s available to you. At Asset harbour we are whole of market brokers so our expert advisors will leave no stone unturned to find you the best deal. 
  4. You need to act now to see if your current mortgage deal is improvable.

Contact Asset Harbour today on 01276 986333 or via our online form and one of our Mortgage Advisors will be happy to help.