Managing your Mortgage

Through the Looking Glass

Interest rates have now increased 7 times since December 2021 and with the BoE planning on bringing inflation down to 2% within 2 years, more increases could be ahead.

In these uncertain economic times, planning a purchase or a re-mortgage on your home could pose a few problems for mortgage seekers, as there are no guarantees that interest rates will not rise.

One of the hardest decisions is to work out whether to fix now, albeit that fixed rate products are not as attractive as they were 6 months ago, follow a base rate tracker or get a variable rate mortgage to benefit the most from changes in interest rates. All have potential risks and benefits when we can only guess at the future.

What is clear is that, depending on the circumstances, some clients may benefit from an over-payment on a mortgage to improve their loan to value ratio (LTV), others may need to increase mortgage terms now to reduce payments and help with an acute financial need to meet outgoings.