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Is now the time to fix or remortgage?

Adam Swalwell from Carver Financial Services explains how deciding on what to do with your mortgage before interest rates rise is an important decision and needs to be done in plenty of time.

For the first time in five years, industry experts have admitted that there is a growing chance that we will see base rate rise within the next six months.

And, after the vote was declared ‘no’ for Scottish independence, some have suggested that there could even be a rise before the end of this year, though this remains unlikely.

With these mixed messages surrounding the rise, borrowers are left wondering what will happen if they were to buy a house or remortgage before the end of the year.

Is now the time to fix or remortgage?

The obvious answer to that question depends on your individual circumstances and you should always seek advice from a professional adviser when deciding.

If you are currently running on tight funds and are on a variable rate, then you may find it difficult to manage with any increased monthly payments when rates rise so remortgaging to a fixed rate will you give the reliability and peace of mind of having to make the same payments each month.

However, if you are on a low variable rate at the minute, and will be able to afford the effect of some of the rate rises to come, then staying with your current mortgage deal may be the better choice.

According to a survey carried out by Principality Building Society, only 48 per cent of homeowners in England and Wales know what interest rate they are paying on their current mortgages.

Taking this into consideration, it is imperative that you prepare, in advance, when making the choice on what to do. Find out what mortgage deal you are currently on and what interest rate you are currently paying over how many years.
We advise starting the process approximately six months ahead of when you are looking at the possibility of changing, rather than leaving it until the last minute when rates have already increased.

Adam Swalwell is from Carver Financial Services – for further information call: 01325 380088

Email: adams@carvergroup.co.uk or visit: www.carvergroup.co.uk
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.