Whichever rate you are on, with the Bank of England (BOE) base rates now at an all-time low of 0.10%* there has never been a better time – in theory – to consider fixing your mortgage rate.
However, with the significant complications of the Coronavirus, lenders have not exactly been rushing to the market to release competitive new mortgage deals. In fact, quite the reverse has been happening after the emergency rate cut on 19th March 2020. Many lender call centres were closed and are still at least operating with restricted hours and administration is still taking far longer due to the extended lock-down.
Mortgage lenders will only have a limited amount of availability on certain mortgage deals and once they have hit their target they will no longer be able to accept any new business on these terms. In addition, as lenders seek to mitigate their own risks, they have been restricting the type of deals available and anything over 60% Loan to Value (LTV is the ratio between the amount you want to borrow and the value of your property) is now more difficult to obtain although not impossible if you know where to look.
As a result, borrowers are on the hunt for new deals. As the market dries up, rates may ultimately begin to rise even if the base rate remains as low. And with many people having been sitting it out on a standard variable rate for some time now, some are asking the question as to whether it is time to secure a fixed rate. Having the peace of mind when rates do eventually start edging up again is something worth considering if you haven’t already.
Your circumstances will be different depending on what type of mortgage you have but seeking the advice of a qualified mortgage broker would be an obvious and hassle-free route to go down if you are at all unsure what to do. If you are thinking of fixing your mortgage rate to take advantage of the current low rate environment, you may be better off acting sooner rather than later to lock-in a deal. It’s also worth remembering that at Mortgagez we don’t charge a penny for this service when you go via our easy to use online mortgage portal.
PLEASE NOTE: Article written November 2020. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. * interest rate at the time of article being written and may be subject to change.
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: Sept 2020 301120 MZ000148
