Okay, it’s time to get serious. Well, not too serious, as that’s not our style. However, recent news reports should give every mortgaged homeowner pause for thought – and here’s why.

The Bank of England yesterday announced a pre-Christmas interest rate hike from 0.10% to 0.25%, as it forecast that inflation would surge to 6% next year.

Many sources of national news are reporting on a table included in a recent report from the Office for Budget Responsibility, which suggested that a) homeowners could be facing the biggest rise in mortgage costs since 2008, and b) interest payments could rise as much as 13% by 2023.

As a Guildford mortgage broker we can say that this even took us by surprise. However, after over a decade of enjoying some of the lowest interest rates on record, coupled with growing inflation, it’s no wonder that things are set to change further.

So, what you can you do about it? More importantly, if you’re applying for a mortgage, about to apply for a mortgage or are still trying to find the best UK mortgage deal before rates go up further, what do you need to know?

It really does depend on individual circumstances. However, given the changing economic landscape and the anticipated volatility, all signs suggest that it’s time for homeowners to seriously consider the benefits of a fixed rate mortgage.

Of course, nobody really knows what interest rates will be in 2023, 2024 or 2025. And economists have been known to get it wrong on more than one occasion. In which case, it comes down to your appetite for risk, how you would fare in a worst-case scenario and what life stage you’re at – all of which can be pretty tough to evaluate without an experienced adviser to help guide you through it.

All of our Guildford mortgage advisers are currently taking high volumes of enquiries from homeowners and those about to become homeowners. Unsurprisingly, many are asking ‘should I get a fixed rate mortgage now?’ Our advice is that if you are concerned about interest rate rises then get in touch with the team, who will be able to help you answer the question ‘is a fixed rate mortgage right for me?’.

So, are the days of cheap mortgages over? Not quite, but expect to see things change over the next 12 months.

If you’d like to explore your fixed rate mortgage options from an award-winning mortgage broker in Guildford, contact the Complete Mortgages team on 01483 238280 or e-mail info@complete-mortgages.co.uk.