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With UK interest rates rising in recent months, the impact on mortgage rates is already being felt across the country as short term and fixed rates increase.1 According to Moneyfacts, the average cost of two-year fixed rate mortgage has risen for the past eight months to 3.25%2.

However, research from UK Finance reports that 74 per cent of homeowner mortgages are already on a fixed rate contract, with 96 per cent of new borrowers choosing this option since 2019. Therefore, a sizeable majority of borrowers will see no immediate increase in their monthly repayments3.

Fixed rate mortgages will remain at the same interest rate until the term ends, however if you have a variable or tracker rate then it is likely you will have already seen an increase in your monthly repayments.

Approximately 850,000 mortgage borrowers have a tracker rate mortgage currently according to UK Finance. The recently announced 0.25% increase to 1.25% in Bank Base Rate means that on a tracker currently at 2.25%, the interest rate would rise to 2.5%, adding £18 a month to a £150,000 mortgage arranged over 20 years2.

We urge you to make an appointment to review your mortgage with us to ensure that your current deal fits your exact circumstances at this moment in time. Regardless of what type of mortgage you have, there has never been a better time to make sure you are in the best position to weather the current economic uncertainty.

Sources

  1. Romei, V. (2022) UK Mortgage rates rise at highest rate in a decade. Available at: https://www.ft.com/content/c41094b4-050d-4522-88ad-fc9a9829bd80 (Accessed 26th Jul 2022)

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Think carefully before securing any other debts against your home.

Your home/property may be repossessed if you do not keep up repayments on a mortgage.

Custom Insurance & Mortgage Solutions is a trading style of Custom Mortgage Solutions Ltd, which is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Custom Mortgage Solutions Ltd is registered in England, no. 07439678. Registered office: First Floor Office, 6 Merus Court, Meridian Business Park, Leicester LE19 1RJ. 

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.

There will be a fee for our services, the exact amount will depend on your circumstances and precise details will be given to you on initial enquiry and you will not be expected to proceed until you have had the fee details in writing and have agreed the fee amount.

The Financial Conduct Authority does not regulate some forms of Buy to Lets.

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