It’s official; the cost of living has gone up. But did you know that despite the gloomy headlines, now could actually be a great time to make some savvy money decisions?
Last month, thanks to an increase in food and transport costs, the UK’s inflation rate rose to 3% – its highest since 2012.
The rise has led to concern that the Bank Of England may increase the bank base rate – from 0.25% to 0.5% – in November in a bid to bring inflation back under control.
It’s all speculation of course but, if it happens, mortgage-lending rates will also rise.
However, it’s not all bad news. If you are a homeowner, now could be a great time to review your mortgages and cash in on any existing deals before a potential interest hike later this year.
There are certainly some competitive deals still available on the market so it’s worth doing your research.
Getting the best deal
Getting the best remortgage deal means comparing the products that are currently available and the interest rates each product offers.
Ideally, you should choose the lowest interest rate, to limit the amount you need to pay back to your lender.
There are some things to consider beyond the interest rate, however. Firstly, some mortgage products will involve a set-up fee.
This is not necessarily a problem if the interest rate is low enough to mean you end up paying less over the lifetime of your mortgage than a product with no set-up fee but a higher interest rate.
Secondly, some mortgage lenders can issue customers with an exit fee if they decide to switch to a home loan from another provider, so it’s worth speaking to your current mortgage provider first to find out about administration charges, and also to see if they can offer you a better deal as a loyal customer.
If you’d like to review your existing mortgage, contact our team of experienced advisors who will be able to help you find the best deal for your needs.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE