Is now the right time to fix?

Russell Hathaway • 2 May 2018

November 2017 saw the Bank of England raise interest rates for the first time in a decade, from 0.25 per cent to 0.5 per cent, causing a number of lenders to increase their mortgage rates.

The Bank of England has indicated there could be further rate rises, so if you’re on a Standard Variable Rate (SVR) or Tracker mortgage you might start to question whether now is the right time to fix your mortgage rate.

When will interest rates go up?

With the UK experiencing high inflation but weak economic growth, opinions are split on how the Bank of England will react, making it very difficult to predict when interest rates might rise.


Should I consider moving to a fixed rate mortgage?

The attraction with a fixed rate mortgage is the certainty it gives to your monthly mortgage repayments over a set period. This is useful if you’re on a budget because it gives you peace of mind that if the interest rate goes up, your repayments will stay the same for the period of the fixed rate.

Whatever type of deal you’re on, it’s a good idea to take any increase in the base rate as an opportunity to review your current mortgage, particularly as lenders will be launching deals to entice new, and retain existing, customers. As the base rate and mortgage rate are often closely linked, many experts believe now is an ideal time to get a new deal, especially if you’re currently on a high SVR.

If you are considering changing your mortgage deal, make sure you're clear on any fees and charges that may be due when remortgaging, as these can reduce any potential savings made. Some lenders have exit fees and early repayment charges as high as 5 per cent, so if you’re coming to the end of your term, check that you’re not switching out during the penalty period.

When looking for a new mortgage deal, it’s sensible to start reviewing your options between three and six months before your mortgage deal is due to end.

If you're not sure whether moving to a fixed rate is right for you, please get in touch.

Your home may be repossessed if you do not keep up repayments on your mortgage

December 2024 Newsletter

by Russell Hathaway • 4 January 2025
Viewpoint

Key Dates for your Finances in 2024

by Russell Hathaway • 23 February 2024
Dates for your diary

The 2023 Autumn Statement

by Russell Hathaway • 25 November 2023
Key Highlights

Wealth Decumulation

by Russell Hathaway • 31 March 2023
Why a plan is crucial when you start to spend your wealth

Autumn Statement Report 2022

by Russell Hathaway • 30 November 2022
A summary of the chancellor's changes

NI Money Newsletter

23 June 2022
Summer 2022

How might rising interest rates affect you?

by Russell Hathaway • 23 June 2022
The BoE has raised interest rates meaning bigger mortgage bills for some homeowners.

What does a Financial Adviser do?

by Russell Hathaway • 18 March 2022
It’s probably more than you think. Find out how they could help you here.

NI Money - Spring Newsletter

by Russell Hathaway • 15 April 2021
Our regular newsletter is available on our website to download. It is packed with articles, ideas and information to help you improve your financial well-being. To download your free copy, click here Articles - The value of advice - Cohabiting couples should make a Will - Why it makes sense to spread your investments - How has COVID-19 affected your retirement? - Home improvements to add value to your home - Want to avoid retirement remorse - Now could be a good time to remortgage To download your free copy, click here

Getting Mortgage Ready

by Russell Hathaway • 30 October 2020
Buying a home takes careful preparation and planning. As well as finding a property you like, you need to get your finances in good order before lenders review them and assess your ability to make repayments on your loan. Save up During the recent lockdown, many lenders pulled their ‘high loan-to-value (LTV)’ products which typically only require a deposit of 5% or 10% (often first-time buyers) to take out a mortgage. The good news is that lenders are returning to the high LTV market, but you may need to act quickly to secure the deals. This is where we can help as we have our finger on the pulse. Save as much as you can towards a deposit. Open a dedicated savings or investment account and make sure it’s paying a competitive interest rate. Check your credit score Even if you’re remortgaging or moving up the housing ladder your credit history will be important. A good credit rating can help you secure a better mortgage deal, with a lower interest rate. The general rule is the higher the score the better, and the more likely you’ll be accepted for a mortgage or other credit. If you’re looking to take out a mortgage or remortgage, check your credit score regularly. You can usually get a simple overview for free and it pays to check with several different sources. Credit Karma, Equifax, clear Score and Experian all offer a service to help you understand your rating. If you find it is lower than expected there are ways to improve it: Pay more than your minimum payments on credit cards Bring your overdraft down Close unused credit accounts Register for the electoral roll Budgeting It’s important to review your income and outgoings. If you have accounts, memberships or subscriptions that you no longer use, it makes sense to close them down. Prospective lenders will also look at the debt you currently have, including whether your current account is in credit. If you have any savings, it makes sense to pay off loans and credit cards but be sure to leave yourself enough saved to cover emergencies. Support from families Research carried out suggests the bank of Mum and Dad or even the bank of Gran and Grandad will help to buy 175,000 homes during 2020 by lending or giving you cash to help with a deposit or acting as a guarantor. Get some good advice As qualified and professional mortgage advisers we know what a good deal looks like, we know the market and we’ll do the hard work for you YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Show More