Why you should lock into the cheapest mortgage you can while rates remain low.
You are advised to find the cheapest mortgage on offer to suit your circumstances while rates remain at record lows.
According to the independent economic think-tank the Resolution Foundation, nearly a million households could end up spending over 50% of their income on repayments if interest rates rise to 2%.
Many households are dependent on the interest rate remaining at 0.5%, and any increase in this rate could lead to many mortgage-holders suffering financial distress.
For most mortgage-holders their monthly repayment is their single largest outgoing, and therefore when the interest rate rises it is crucial that you are on the cheapest mortgage possible.
The Bank of England is trying to end speculation of a rate increase, however the interest can't stay at 0.5% forever.
Many households are now used to rates set at record lows and are heavily dependent on their remaining so. Standard variable rate mortgage-holders are particularly vulnerable, and an interest rate increase could lead to hardship for many.
To avoid financial distress as rates rise, the advice is to lock into the cheapest mortgage you can while historically low rates remain on offer.
For impartial advice and to discuss your remortgaging options you are recommended to call a Deal Direct mortgage adviser.
As an independent 'whole of market' broker we do not limit our advice and quotes to particular lenders. We therefore advise you based on your needs and not those of the lender.
For the cheapest mortgage deals UK wide call 0800 048 8828.
