My mortgage deal is coming to end. What do I need to do?
“If your Fixed Rate is due to end in the next 3-6 months then it’s time to talk to an independent mortgage adviser who can look at the best options for you. You need to act before your mortgage automatically goes onto the Standard Variable Rate, as this will be higher than many deals.
“You can either do nothing and go onto the Standard Variable Rate with your current lender, select a new product with your current lender or find a new product with an alternative lender.”
How can I get the lowest mortgage rate?
“Put simply, the higher the deposit you have, the better the interest rate is.
“First Time Buyers should take advantage of Lifetime ISAs where you can save up to £4000 a year and the government will top this up with a 25% bonus on what you have saved. Gifted deposits are accepted by most lenders too.
“There’s also mortgages that allow your family and friends to help towards a purchase and buy a ‘share’ of your property to help you get onto the property ladder. They can help towards boosting your mortgage affordability and/or help with the actual monthly mortgage repayments too. They can even opt to not charge you interest and can gift the share later. These are highly specialised and more complicated lending tools so always seek advice from a specialist mortgage broker such as Mortgage Advice Bureau New Homes Mortgages.”
Should I fix my mortgage?
“Whether you fix depends on your individual circumstances. Mortgage rates are predicted to increase over the next two years before potentially reducing as inflation comes under control.
Some customers prefer to fix their mortgage, so they know what they’ll be paying over the fixed term, whereas others find a different mortgage product more suited to them. Some deals allow you to switch to a fixed mortgage without penalties. Speak to a mortgage adviser who will review your individual circumstances and help you to decide the best course of action.”