The advice comes from mortgage expert, Pete Mugleston, who was responding to Barclays and Halifax reducing the time in which borrowers can secure a new mortgage before their current deal runs out.
In the last two years it has become more common for mortgage lenders to allow borrowers to lock into new deals up to six months before their present deal ended.
This was a real perk to many borrowers when interest rates and mortgage rates were rising because it allowed them to secure their deal before rates increased further. It also meant they could plan and budget better.
But earlier this month Barclays announced it would be halving the amount of time borrowers had to secure a new rate from six months to three months. This new time frame comes into effect today (25 September).
It’s not the only lender, Halifax and Lloyds are also cutting their lock-in windows from six months to four.
How will the shorter lock-in windows impact borrowers?
With interest rates coming down, there is no longer so much urgency for borrowers to lock-into new deals. Barclays said the current stable rate environment meant customers were applying to change products within three months, rather than six, anyway.
But Pete Mugleston, who is MD of www.onlinemortgageadvisor.co.uk thought it put more of the onus on customers to keep on top of their mortgage. He urged borrowers not to leave their remortgage to the last minute.
“With Barclays cutting their lock-in window to just three months, and Halifax and Lloyds following suit with a reduction to four months, the responsibility is directly on borrowers to be more proactive than ever,” he said.
“This shrinking timeframe gives people less room to plan ahead, especially in a volatile market where rates can change overnight. It’s no longer a question of simply ‘keeping an eye’ on mortgage deals, this shift demands immediate action from homeowners.
“The reality is the reduced lock-in period poses a real risk for many. Those nearing the end of their fixed-term deal should start the remortgaging process far earlier than they might have considered before. In a market prone to sharp and unpredictable rate fluctuations, it’s crucial to stay ahead of the curve, or risk being caught out by rates spiralling beyond control.
“Waiting until the last moment could cost you, both in terms of stress and financial burden. The stakes have been raised, and borrowers need to act accordingly.”
