Base Rate Rises Again

What are your options if your current mortgage product is due to end?

On the 7th of August 2023, the Bank of England raised the base rate to 5.25%. The highest it has been since 2008 and now the 14th consecutive rate increase.

What this means exactly is that the cost of tracker and variable mortgages are rising aligning with the Base Rate changes and those who have a fixed rate mortgage product will see no change.

However, those with a fixed rate ending soon may wish to secure a new rate as soon as possible to avoid any potential Bank of England increases.

Experts are forecasting the Bank of England Base Rate will peak at about 6% by early 2024.

Fixed rate ending within 6 months – what can you do?

Gather all your current mortgage details

It’s always best to start off by gathering all the details of your current mortgage. Find out what your current rate is, how long your mortgage term is, when your current fixed rate product is due to end and who your mortgage is currently with.

Increase your acceptance chances – improve your credit file

To increase your chances of securing a more competitive rate, check your credit score and see if there is any room for improvement.

You can improve your credit score by registering on the electoral roll for your current address, making your payments on time for any finance agreements and checking your report for fraudulent activity and reporting it to your bank.

Find out more about improving your credit score.

Find out how much you’ll be paying

You can use a mortgage calculator to get an estimate of how much you could potentially be paying per month.

Should you fix and if so, how long for?

Deciding whether or not to fix again and how long for will be up to your individual circumstances. However, this is when speaking to a mortgage broker like us can be useful. We can find you all the different options available and provide you with advice on what we think is best for your situation.

Why secure a mortgage rate 6 months before your current one is due to end?

With predictions that the Base Rate will continue to rise, possibly to 6%, it can be a good idea to secure a new fixed rate as soon as possible to avoid any potential future increases.

There are some lenders who you can secure a new rate with 6 months before your current mortgage product is due to end.

During the time before your new mortgage is due to start, at Amplo Mortgages we will continuously check our rates and if a lower rate becomes available, we will secure you the lower rate.

Have we been able to secure a client with a lower rate after they’ve secured a rate?

One of our clients came to us in October 2022 as they had an offer accepted on a New Build property that was due to complete in May 2023.

We submitted a residential mortgage application and got them a mortgage offer to secure a rate. As we actively keep checking our lender’s rates until the funds have been drawn down, we were able to secure a lower rate for our client.

Previously they were going to pay £1,743.54 per month on a £357,994 mortgage at a fixed rate of 4.95% over 38 years.

Whilst now they’re going to pay £1,586.04 per month on a £357,994 mortgage at a fixed rate of 4.26% over 38 years.

Saving them £157.50 per month which is £3,780 over the course of their two-year fixed rate.

If your current mortgage is due to expire in 6 months or less, or you’re looking to purchase a new property and would like to secure a mortgage offer, don’t hesitate to get in touch with our friendly team.

Call us on 01270 445310 or complete our enquiry form and we’ll get in touch as soon as possible.