There is no excuse when it comes to ensuring the mortgage you have is protected from the effects of economic upheaval and the threat of higher interest rates.
Sadly, a reluctance to change loan provider is costing homeowners a staggering £10 billion a year – matching the annual cost of online fraud in the UK. Fixing a rate will protect homeowners from rate hikes.
The figures come from a study by an online mortgage broker, Trussle, which also shows that jargon, poor communication from lenders and a difficulty in comparing deals is hindering customers' appetite for switching.
Research by online mortgage broker Habito shows many are put off re-mortgaging because they associate it with increasing their debts or falling into financial difficulty rather than securing a cheaper loan. Another common misconception is that homeowners are getting a good loan deal by virtue of being a loyal customer.
Homeowners seeking out cheaper mortgages should not delay as rates are poised to rise in coming months. First-time buyers should also act swiftly to grab a leading mortgage rate for any imminent property purchase.
Since September 2016, banks and building societies have had access to cheap credit from the Bank of England, on condition they pass on rate cuts to borrowers. But this 17-month spell of financial support, known as the 'Term Funding Scheme', dries up in little over a fortnight.
Andrew Trantum, Managing Director, Embrace Mortgage Services says: 'Predictions indicate two or three potential base-rate rises this year. This will increase the monthly costs for homeowners, a huge concern for so many that, are already living life month-to-month. This will impact people on fixed and variable rate deals, people need to be thinking ahead now.’
Customers often struggle to pick the right mortgage among tens of thousands of options. Indeed one in four people are thought to be on the wrong deal.
While it seems common sense to pick the lowest interest rate, set-up fees can add thousands of pounds to costs, making low-interest loans more expensive than they first appear.
An Embrace Mortgage Services adviser will simplify mortgage shopping by asking the right questions and doing all the legwork to find you the most suitable deal. Get in touch today and set up an appointment to discuss your remortgaging options before the rates increase – be ahead of the rest!
Your property may be repossessed if you do not keep up repayments on your mortgage.
Embrace Mortgage Services usually charge a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Thomas Morris (Property Management) Limited trading as Thomas Morris is an introducer appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited for the purpose of the provision of advice in relation to mortgage and non investment insurance products. Mortgage and Protection advice is provided by LSLi Ltd t/a Embrace Mortgage Services, an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited. First Complete Ltd is authorised and regulated by the Financial Conduct Authority.