New Year, New Mortgage (but don’t leave it too late)

Monday, 29th January, 2018

Now that the New Year is fully underway, we’re urging our clients to start taking steps towards getting a new mortgage.

Whilst there are still a few lenders that are yet to increase their rates in line with the recent interest rate rise, the majority have already done so. Now, if you’re on a fixed rate mortgage then this won’t affect you.

However, if you’re currently on the standard variable rate (SVR) – or are about to enter the realms of the SVR – then this may be of interest.

1. Some lenders still haven’t raised their rates

For those who haven’t been thinking about their mortgage and what the interest rate rise means for them over the last few weeks, there’s still time to switch to a pre-interest rate rise mortgage deal – but you’d better be quick.

2. Beat the New Year rush

Whilst 2018 is in full swing, it can often take a few weeks before people start to really think about their next mortgage move. In fact, sometimes it’s February before the mortgage market really gets going. Put simply, if you act fast we can get you ‘mortgage-ready’ before everybody starts to want to do the same thing.

3. To rise or not to rise

There is already speculation that the next interest rate rise could come as early as May 2018, which means that if you haven’t already noticed the difference to your monthly mortgage repayments, then you may well do if the next interest rate rise comes as early as spring.

As a Guildford mortgage broker that has been in business since 2005, we’re still amazed to see the reaction on our clients’ faces when we explain how easy it is for them to remortgage. It’s even easier if you let a reputable mortgage adviser manage the process on your behalf.

So, if any of the three points raised here are relevant to you and you feel that you’re ready to remortgage – or at least you’re thinking about remortgaging in 2018 – then call us so that we can get your mortgage application underway.

Even if you aren’t looking to remortgage and simply need to arrange a mortgage, either for the first time or on a new property, then call us on 01483 238280 or email info@complete-mortgages.co.uk.

Remember, we also specialise in buy to let mortgages, commercial mortgages, limited company buy to let mortgages, equity release mortgages and adverse credit mortgages.

By Mark Finnegan, Director at Complete Mortgages


How will the interest rate rise affect my mortgage?

Monday, 27th November, 2017
complete mortgages

Well, it’s finally happened.

We knew it was coming, of course; or at least we had an inkling. Those of you who follow the news may even say we had fair warning.

The thing is, a rise in interest rates had to come at some point. Especially when you consider how the base rate dropped to 0.50% way back in April 2009 and maintained that level until August 2016, when it dropped a further 0.25%. The recent announcement was, in fact, the first interest rate rise since 2007.

And whilst it’s good news for savers, those on standard variable rate mortgages and tracker mortgage products are likely to notice the difference, particularly if their level of mortgage borrowing is substantial. As a result, there will undoubtedly be many people wondering how much more expensive their monthly mortgage repayments will become following the hike.

Rather than provide a breakdown of costs based on mortgages valued at X, Y and Z (particularly when there are countless mortgage calculators online that can give you the exact difference to the pound), I’d like to use this article to reassure homeowners with mortgages and let them know that there are still hugely competitive fixed rate mortgages available.

First of all, the 0.25% interest rate rise equates to a monthly mortgage repayment increase of around £18 based on an average 25 year repayment mortgage of £150,000 – or £216 a year. However, perhaps the most important thing to consider is the likelihood of a continued rise in interest rates – something that none of us can predict.

For example, if we take that average mortgage amount of £150,000 and add another 0.25% rise, and then another 0.25%, monthly repayments begin to climb by £36 and £54 respectively; £432 and £648 if we approach it on an annual basis.

And whilst nobody knows when the next interest rate rise will be, it is our job to make our clients aware of the financial implications of further incremental raises.

Our advice is as follows: –

1. Find an online mortgage calculator and understand the implications of further interest rate rises in increments of 0.25% (for many people, this hasn’t been a consideration for almost a decade!)

2. Review your current mortgage; even if the recent rise isn’t enough of a shock to make you switch your mortgage, there’s no harm in reviewing it and weighing up your options.

3. Contact a member of the Complete Mortgages team to find out how we can help you benefit from some very competitive fixed rate mortgages – before they become less competitive. Don’t delay – we have access to some great 5 year fixed mortgage rates which won’t be around forever – speak to one of our advisers now.

Contact Complete Mortgages on 01483 238280 or email info@complete-mortgages.co.uk to find out more. Remember, we also offer specialist mortgages including limited company buy to let mortgages, equity release mortgages and adverse credit mortgages.

By Mark Finnegan, Director at Complete Mortgages