Could you cope with a mortgage rate rise?

With the Governor of the Bank of England Mark Carney recently advising that the base rate could begin to rise by next year, are you questioning how you could continue to manage your finances if mortgage rates rise too?

For all mortgage-holders there is concern that once the base rate has risen so will mortgage rates making home ownership less affordable. The double whammy to this will be the fact that once next March arrives, remortgaging will be that much harder meaning you could be stuck on a higher rate.

With the EU mortgage directive due to come into force in March, many mortgage holders may find they no longer fit within lenders criteria and affordability requirements. This effectively means remortgaging to a lower rate will not be possible and so many will be switched to their lender’s SVR which could significantly rise as the base rate rises.

To avoid getting trapped you are strongly advised to start looking around the market while deals are available for you to switch to. Failure to act could mean financial hardship if you are switched to a SVR you cannot afford.

Now is the time to lock into a cheap fixed rate mortgage.

For so long we have been used to a base rate set at 0.5% and historically low mortgage rates, as this situation changes monthly mortgage payments will increase and so you are recommended to prepare yourself by searching for a new lower rate deal.

For help sourcing a new competitive offer, contact us at Deal Direct. We can search through every UK lenders range to find a low rate remortgage for your deposit level.

Act now and call us to find out how much money we can save you on your monthly repayments.

Call 0800 048 8828 for remortgage advice and a low rate quote.