DON’T BE CAUGHT OUT BY MORTGAGE RATE INCREASES

A number of lenders including the Halifax and the Bank of Scotland are taking the opportunity to raise their Standard Variable Rates. They can make these changes even though the Bank of England Base Rate has not changed. This will mean an extra 0.25% to 0.5% added to the mortgage rate. The solution for the borrowers affected is either to switch to a Tracker Rate which can only move when the Bank of England rate changes, or a Fixed Rate which cannot move at all during the period over which the rate is fixed. We are of the view that a 3 to 5 year fix is a good strategy, with 5 year fixed rates below 4.0% for those with a low loan to value mortgage. For a review of your options, do contact us now on 01342 313302!