June 2023 – Bank of England Raises Interest Rates to 5%

Current Mortgage Rate Ending Soon?

There has never been a better time to seek good quality mortgage advice as you approach the end of your mortgage deal. 6 months prior to your deal ending is the perfect time for you to get in touch.

Please do not click on your banking app or agree to a new deal with your current lender direct. You’ll risk locking yourself into a product that you may not be able to get out of without big penalties. We’ll do it all for you free of charge!

We’ll ensure that we secure you the best deal and keep your options open so that if things change in the 6 months between now and your product ending, you can re-contact us to switch penalty free if something better comes available.

Not all lenders allow this so it’s better to leave this to us. We also get access to exclusive products from time to time you can’t get direct.

Typically, our team are seeing an average increase of £200/£300 per month in our client’s mortgage payments after coming off a 5-year fixed deal.

The shorter-term fixed rates of 2 to 3 years are popular now as they offer the opportunity of reviewing the market again when (hopefully!) rates have come back down.

Purchasing a New Property?

With the base rate having now risen to 5%, mortgage rates are likely to continue increase over the coming days and weeks.

If you are considering buying a new property, there are various schemes we can explore. Shared ownership is one and is aimed at both first time buyers and home movers.

The more deposit you have available the cheaper the mortgage payment, perhaps you can ask family members who could contribute here to help you get a cheaper deal.

If you are renting, you could also approach your landlord to see if they would like to sell the property to you, maybe at a discount. Any discount can usually be used towards your deposit, meaning you will put less cash down.

We are seeing quite a lot of landlords exit the market due to increased mortgage costs so it is well worth asking the question.

Later Life / Equity Release Plans

More and more clients aged over 50 are requiring help with mortgage services, whether this be their mortgage term is coming to an end, to consolidate debts, or simply that they are looking to release equity from their home for various reasons.

As with regular mortgages, interest rates are rising in the later life sector. The good news is that there are lots of options available to keep interest payments to a minimum for you.

In fact, only this week, we saved a customer over £400 per month! Their interest-only mortgage term was coming to an end and they were paying a high standard variable rate of interest of 8%+. We repaid this mortgage with a new, cheaper, equity release lifetime mortgage deal.

Now, more than ever, seeking whole of market later life mortgage advice will prove invaluable. We’ll look at all the lending options available to you, including charities and grants that do not involve borrowing money. It is the only way to make sure you have all the information you need to make the best decisions for you and your family.

Written by
Malcolm Davidson
Managing Director of UK Moneyman Ltd.
MAQ & CeRER Qualified

27th November 2023

About the Author

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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