Time running out for low-rate fixed mortgages

Homeowners are rushing to secure a low fixed rate mortgage deal, in anticipation of an expected increase in the Bank of England base rate.

Experts believe that tomorrow (November 2) the Bank of England will increase the base rate from 0.25% to 0.5%, marking the first interest rate increase in many years. Some of the larger mortgage brokers have reported a flurry of activity, as home owners look for low-rate deals to secure their monthly mortgage payment.

Some of the best fixed rate deals have already been discontinued by lenders prior to tomorrow’s expected announcement. Some experts believe that up to eight million people in the UK have not experienced an increase in interest rates as adults. A jump of 0.25% would mean that a person with a £175,000 mortgage would pay an extra £22 a month. Although some of the lower fixed rate deals are no longer available, there are still some attractive options out there for anyone who would prefer the security of a fixed monthly payment.

According to the product manager for London & Country Mortgages, Peter Gettins, applications for remortgages have increased by 20% against September’s figures, while October has seen remortgage applications rise by 60% on October 2016 figures. Gettins adds that as more people apply for the best fixed term deals, lenders become oversubscribed and withdraw the deals. Mortgage advisors spend a considerable amount of time studying for CeMAP courses, so that they are qualified to help homebuyers to find the best products.


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