The Question
I have heard mortgage rates are forecast to increase by 13% in 2023 and will start rising next year. I am a little concerned about what to do because my five-year fixed rate is due to end in April next year!
Will this mean my mortgage rate will go up when I remortgage in April? Is there anything I can do to find a better deal? I have looked into exiting my current deal early, but there is a penalty.
The answer
Yes, this is indeed the prediction on rates or at least one version of the predictions!
I have some good news for you – many lenders provide six-month mortgage offers, so you can apply for a mortgage now, and then once your offer comes through (which takes around three weeks), you have a further six-month window on which to complete.
This means you can secure a rate now, before they go up, and then tie in the completion for when your current rate ends.
You can read more of Jeni’s advice on residential mortgages here. If you are interested in a buy-to-let mortgage, Jeni also writes a Q&A column on this area of the mortgage market, here.
If you have a question you would like to ask Jeni email kate.saines@emap.com
Jeni Browne is business development director at Mortgages for Business
