Category Archives: Mortgages


Your Comprehensive Step-by-Step Remortgaging Guide

Your Comprehensive Step-by-Step Remortgaging Guide

Remortgaging can be a savvy financial move for homeowners looking to save money, access equity, or improve their mortgage terms. However, navigating the remortgaging process can be daunting without proper guidance. In this comprehensive guide, we’ll walk you through each step of the process , empowering you to make informed decisions and secure the best deal for your needs.


Step 1: Assess Your Current Mortgage Deal

Start by reviewing the terms of your existing mortgage. Take note of your current interest rate, remaining loan balance, repayment terms, and any penalties for early repayment. Understanding your current mortgage will help you evaluate whether remortgaging is a viable option.


Step 2: Let us help research a new mortgage deal

Next, identify your remortgaging goals. Are you looking to lower your monthly payments, shorten or extend your loan term, access equity for home improvements, or switch to a more favourable interest rate? Clarifying your objectives will help guide your decision-making process moving forward.


Step 3: Research New Mortgage Deals

As a whom of market mortgage intermediary we have access to deals and offers that are not available directly with the lenders. Let us do the hard work for you and researching and comparing new mortgage deals from various lenders. We will consider all the factors such as interest rates, loan terms, fees, and eligibility criteria. We can explore the widest range of options available to you ensuring we get the most suitable deal to meet your needs.


Step 4: Calculate Potential Savings From A Remortgage Deal

We will work out your potential savings from remortgaging. Comparing your current mortgage payments with projected payments under different remortgage scenarios. We will factor in any upfront costs, such as arrangement fees or valuation fees, to determine whether the savings outweigh the expenses.


Step 5: Understand what documentation is needed

We will guide you fully on the necessary documentation for the remortgage application process. This may include proof of income, bank statements, tax returns, and details of your current mortgage provider and deal. Having these documents readily available will streamline the application process and prevent delays.


Step 6: Apply for Remortgaging

We will help you every step of the way and will submit your remortgage application to the chosen mortgage lender. We will confirm exactly what information and documentation is required to support your application. Be prepared to undergo a credit check and appraisal of your property as part of the approval process.


Step 7: Review Offer and Terms From Your Mortgage Lender

We will keep on top of the application process from start to finish. We will issue the offer from the lender once produced and help you to carefully review the remortgage offer and terms provided by the lender. Pay attention to interest rates, repayment terms, fees, and any special conditions attached to the loan.


Step 8: Proceed with Closing And Finalise Your Remortgage Offer

Once you’re satisfied with the remortgage offer, we will help with the process of concluding the mortgage. Ensuring all the necessary documents are in  place and complete any remaining paperwork. Your lender in conjunction with your solicitor will handle the transfer of funds and coordinate the payoff of your existing mortgage.


discuss remortgage deals with an expert to help save you time and money

Discuss the best mortgage deal for you with our experts

In conclusion, remortgaging can offer homeowners significant financial benefits, but it’s essential to approach the process with careful consideration and thorough research. By following this step-by-step guide, you can navigate the remortgaging process confidently and secure the best deal for your individual circumstances.

Call us on 01698 200050 or e-mail to arrange an appointment with one of our advisors.

The Mortgage Charter: Your Lifeline in Tough Times

The Mortgage Charter: Your Lifeline in Tough Times

In the ever-evolving landscape of homeownership, financial uncertainties can sometimes cast shadows on our dreams. However, there’s a guiding light – the Mortgage Charter. It’s a beacon of hope, offering vital support and assistance to those facing mortgage-related challenges.


mortgage charter to assist when struggling with monthly mortgage repayments

What is the Mortgage Charter?

The Mortgage Charter is a commitment made by mortgage lenders, endorsed by government agencies and the Financial Conduct Authority (FCA), to provide help and support for homeowners who may be facing financial difficulties. It’s a pledge to be understanding, compassionate, and proactive when borrowers are struggling to meet their mortgage payments.


your mortgage lender is required to help if struggling with monthly payments

Key Provisions of the Mortgage Charter

Created in response to the pressures on households with mortgages, due to rising inflation and increased cost of living, The Charter signifies a significant shift in the approach to mortgage lending.

Lenders are expected to now reach these new expectations which includes, but is not limited to, the following:

  • Payment Flexibility: Lenders who adopt the Mortgage Charter often offer flexible payment options, which can include temporary payment reductions or even payment holidays in times of financial crisis.
  • Communication and Support: It encourages open and honest communication between lenders and borrowers. If you’re facing difficulties, don’t hesitate to reach out to discuss your situation.
  • Sustainability: The Mortgage Charter emphasises sustainable homeownership. Lenders work with borrowers to find solutions that allow them to keep their homes while also meeting their financial obligations via their monthly payments.
  • Guidance and Advice: Lenders under the Mortgage Charter often provide guidance and financial advice to help borrowers regain their financial footing.


if rising interest rates are affecting your mortgage rates get in touch with your lender

The importance of seeking help if you’re struggling with monthly repayments

If you find yourself in a financial bind and are struggling with your mortgage payments, don’t hesitate to reach out to your lender. They can provide more detailed information about the specific assistance and programs available to you.

Remember, the Mortgage Charter is a lifeline – a commitment by lenders to help homeowners in challenging times. Your home is an important asset, and there are options available to help you protect it, even during difficult periods.

The service is there and available for you to use, so do not struggle with monthly repayments alone.


protect your mortgage deal with the mortgage charter

Conclusion regarding the mortgage charter

The Mortgage Charter is a safety net, a helping hand in times of need. It’s a testament to the commitment of lenders to support homeowners in their journey to financial stability. If you’re facing mortgage-related challenges, reach out to your lender and explore the assistance and options available to you. Your home is more than a structure; it’s a place where your dreams are nurtured, and the Mortgage Charter is here to ensure those dreams endure.

Your home is at risk if you don’t keep up repayments. If you are experiencing financial difficulty act quickly and get in touch with your lender who will explain the various options and support that is available.


discuss mortgage deals, fixed rate mortgage and variable rate mortgage with our mortgage experts

Get in touch with our experts to discuss the mortgage deals available to you

Whether you are looking to discuss any of the above, including your monthly mortgage repayments, or you are a first time buyer, our team are on hand to discuss mortgage deals and the offers that are available to you.

Our team can go over everything from interest rates to the types of mortgages you can choose and they will also advise how each choice could affect your mortgage and will encourage you to think carefully before securing a deal.

Get in touch on 01698 200050 or e-mail

A Deep Dive into 100% Mortgages: What You Need to Know

A Deep Dive into 100% Mortgages: What You Need to Know

The dream of homeownership is a significant goal for many, but for some, saving up for that all-important down payment can feel like an insurmountable hurdle. This is where 100% mortgages may work for some.

In this blog post, we’ll explore what 100% mortgages are, how they work, and the pros and cons associated with this type of home financing.


mortgages uk, what's on offer from a 100% mortgage

Understanding 100% Mortgages

A 100% mortgage is exactly what it sounds like: a loan that covers the cost of your home without requiring a deposit upfront.

Traditionally, homebuyers are required to make a deposit, typically around 5% – 15% of the home’s purchase price, to secure a mortgage. However, 100% mortgages are designed to eliminate this upfront financial burden.


How the mortgage deal works by comparison to other mortgage offers

  • Zero Down Payment: The most obvious feature of a 100% mortgage is that you don’t need to provide a deposit. This means that you can buy a home without having to save thousands of pounds in advance.
  • Higher Interest Rates: To compensate for the added risk associated with 100% mortgages, lenders often charge slightly higher interest rates compared to traditional mortgages. Some lenders may also charge an arrangement fee. This means that you can expect higher monthly mortgage repayments.
  • Credit Requirements: Lenders may have stricter credit score requirements for 100% mortgage applicants to mitigate the higher risk.
  • Income Verification: Expect more rigorous income verification to ensure you can meet your monthly mortgage obligations.


the benefits of a 100% mortgage application

The Pros of 100% Mortgages

However despite a more critical review ahead of being accepted for a 100% mortgage, there are many benefits to taking on one of these deals. These include:

  • No Down Payment: The most significant advantage is that you may be able to get into homeownership without a substantial upfront cash requirement.
  • Quicker Homeownership: You can become a homeowner sooner by comparison to other mortgage deals. Instead of waiting years to save for a deposit, the 100% mortgage will cover the cost of your house purchase with no savings required for the deposit. Any fees such as solicitors, or any arrangement fees will be required to be paid by you.
  • Investment Opportunity: If home prices are rising, you may benefit from the appreciation of your home’s value without needing an initial investment. This is subject to property market behaviour which can fluctuate over time.


the cons of taking out a 100% mortgage as your new deal

The Cons of 100% Mortgages

However it is also beneficial to be aware of some of the negative associations with 100% mortgages from a buyers perspective.

  • Higher Interest Rates: Over the life of the loan, the higher interest rates can result in a significantly larger total repayment amount. Mainly caused by higher repayments on your mortgage.
  • Risk of Negative Equity: On the flip side of what we mentioned above. In the early years of the mortgage, you might owe more than your home is worth, especially if property values decline.
  • Stricter Qualification: Meeting the credit and income requirements can be more challenging.


taking out a new mortgage as a 100% deal

Is a 100% Mortgage Right for You?

Given assessment of both the advantage and disadvantages of a 100% mortgage, the decision to pursue a 100% mortgage depends on your individual financial situation and goals. If you have a good credit score, stable income, and understand the long-term financial implications, it might be a viable option for you. However, carefully weigh the pros and cons and consider your ability to manage all the costs.

Before deciding if a 100% mortgage is for you, important to know all your options. Get in touch with us and we can provide personalised guidance based on your unique circumstances.

Remember that while a 100% mortgage can be a valuable tool for achieving homeownership, it’s crucial to make an informed decision that aligns with your long-term financial goals.


glasgow mortgage advisors open Monday to friday

Speak to one of our expert mortgage advisors today

Whether you’re a first time buyer or you have an existing mortgage deal in place, our team are on hand to answer any queries you may have and can put forward some of the best suited mortgage deals based on your circumstances and requirements.

Get in touch today on 01698 200050 or e-mail

Remortgaging vs Equity Release

Remortgaging vs Equity Release

Remortgaging and equity release are two ways of accessing the equity in your home.

Remortgaging involves taking out a new mortgage on your home and negotiating a deal with your current mortgage provider, which will be subject to additional fees and changes to your monthly repayments.

Meanwhile equity release involves taking out a loan on your home that is secured against the value of the property. The loan can be used to help finance home improvements, pay off debts, or make other investments.

The main difference between equity release vs remortgaging is that equity release has no monthly repayments while remortgaging does. Also it’s important to note that you can remortgage your property at almost any age, whilst equity release is typically only available to people over the age of 55.

Both remortgaging and equity release can be beneficial, but they both have their own pros and cons.

Read on to find out more.

discuss your deal with mortgage providers to find the best option for you

Remortgaging your current mortgage deal

Open to anyone at any time, remortgaging is a great way to save money and access equity in your home. It allows you to switch to a new lender and a new mortgage deal that could provide a better rate, lower monthly payments, or both.

You can remortgage to a new lender to get a better rate or to get a better deal with your current lender. Before you remortgage, you will want to consider your current mortgage loan balance, your current credit score, and your financial situation.

Additionally, you should compare different lenders and their mortgage rates to find the best deal. You can also use online comparison tools to help you compare lenders and find the right deal for you, however a mortgage broker such as ourselves is best placed to do this for you. We not only save you time but we have access to exclusive deals and insights not available to the public.

And, once you have found the best deal, you will need to apply for the remortgage with the new lender and provide proof of your income and assets. Thereafter your new lender will evaluate it and determine whether or not to approve your remortgage.

If approved, your new lender will arrange for the new mortgage to be taken out and your current mortgage will be paid off.

Remortgaging can be a great way to save money and it is usually easier to qualify for than other forms of borrowing, but it is important to make sure that you understand all of the costs associated with the remortgage before you move forward.

If you choose to remortgage to access a sum of money your monthly repayments will usually increase to cover the larger loan amount and it may extend the term of your mortgage. And it is for this reason that some lenders may require you to have a good credit score in order to qualify. Reason being, if you don’t keep up with repayments your home may be repossessed.

discuss your equity release plans with the mortgage hub in Hamilton, Glasgow

Releasing equity from your home

The other option available to you is equity release, if you meet the age criteria.

Equity release comes in the form of a lifetime mortgage or home reversion plan. Both options release equity that you’ve built up in your home, with the options to take either a take payments in installments or to take all the money at once. You will then agree with your personal loan provider to pay it back with interest.

To equate the amount of equity you have built up in your home, you take the current market value of your house and minus any outstanding secured debt you have. This is the total amount of equity you have available to you.

This money could then be used for home improvement, to pay off debts, to help finance a holiday or a car, or indeed to help with care costs for a loved one or to help your family.

A great way to access the equity in your home without having to make any major changes. You do not have to take out a new loan, and the interest rate on the loan may be lower than other types of borrowing. However, you will have to pay the loan back, and you may be subject to high interest rates and fees. Additionally, you may be putting your home at risk if you are unable to make the repayments.

It is for this reason that you should always seek financial advice and consider other options, such as downsizing your home or releasing funds through a retirement plan, before you decide to release equity from your home.



evaluate the deal you have with your current provider to get the best results

An evaluation of remortaging and releasing equity

Both remortgaging and equity release can be a great way to access the equity in your home, but it is important to consider the pros and cons of each option before making a decision. It is also important to speak to a financial advisor or a mortgage broker, such as The Mortgage Hub, to make sure you are getting the best deal for your circumstances.


discuss your current mortgage deal and see the options available from mortgage provider


Discuss your remortgaging options with one of our expert mortgage brokers

If you are looking for ways to release equity or negotiate a new mortgage deal, get in touch with one of our expert brokers to discuss the options available to you.

Our team are available Monday to Saturday on 01698 200050 or e-mail

Interest rate news – the latest increase by Bank of England

Interest rate news – the latest increase by Bank of England

The latest interest rates rise has seen an increase from 5% to 5.25% from the Bank of England, the 14th consecutive increase from the institute. Now at their highest point in 15 years, our latest blog post provides insight in to the predictions made by economists regarding future inflation and interest rates in the coming months.


guidance for mortgage customers and their monthly repayments

How does this affect my current mortgage offer?

When it comes to your current deal, those on a tracker or variable mortgage, or anyone due to renew next year, is particularly vulnerable to changes in interest rates.

This increase means that these mortgage-owners can expect rising prices, resulting in you having to pay back more money to your lender every month. An option to try and release some of this burden would be to extend terms, giving you an extended period in which to make your payments.

In regards to fixed rate mortgages. Current deals being offered by lenders have already increased to reflect the rate rises, with the average two and five-year fixes between 6 and 7%.

Click here for more information regarding mortgage types.


the interest rate rise and how it will affect first time buyers in the property market

How will it affect my likeliness to get my first mortgage deal?

If you are looking to get your first mortgage deal then all of the above will apply. You can expect to require a larger deposit to offset the borrowing costs from your lender and to have a higher interest rate, even with fixed rate deals.

Essentially rising interest rates makes borrowing more expensive, which in turn makes monthly repayments increase as well as the total amount a buyer pays in interest over their mortgage term.

Your likeliness to be given a mortgage deal by a lender will be determined by the following:

  • Age
  • Income
  • Debts
  • Employment status
  • Credit score

However this can be assisted in some way with a LTV or a zero deposit mortgage – targeted at first time buyers.


Loan-to-value (LTV) mortgage

A loan-to-value (LTV) mortgage, otherwise known as a 95% mortgage, requires buyers to raise only a 5% deposit.

The LTV (Loan to value) is a ratio of a home loan relative to a property’s value. For example, a mortgage worth £190,000 on a £200,000 home has a 95 per cent LTV. Buyers then make up the five per cent difference with a deposit — in this case, £10,000.


Zero deposit mortgage

Predominantly aimed at renters who lack savings or financial support from their family but hoping to purchase their first home and enter the property market.

The deal is available for first-time buyers across the UK. Tenants aged 21 and over may be able to take out mortgages at between 95 per cent to 100 per cent of the value of the property they want to buy.

This product would not allow borrowers to pay more for their average monthly payments than they were handing over in rent.

Applicants will also need to demonstrate at least a 12-month track record of paying their rent and bills on time.


when can it be expected for rising rates around mortgage deals to decrease?

When can it be expected for interest rates to come back down?

Predictions surrounding interest rate rises and decreases are very much that, predictions, however some key investors have expected a peak of around 5.75% towards the end of 2023. At this point it is then expected that a decrease will be on the horizon.

Nina Scaroni, chief executive of the Centre for Economic and Business Research states that her timescale for this would be Summer of 2024 when speaking to Sky News.

However this will all be determined by inflation and the rate at which this comes down. It is unlikely that the Bank will lower the base interest rate until this is visible. The reason for this is to avoid people spending more and the inflation rising even higher.

The silver lining in all of this though is that The Bank of England will be keen to get interest rates down sooner rather than later, as keeping them high for a long period of time increases the risk of negative economic growth and a recession. And they predict that inflation will decline throughout the rest of 2023 – and so it’s likely to lower rates slowly in response to that.


mortgage advice bureau are on hand to advise regarding mortgage costs and rate rise

Looking for guidance on your current mortgage deal?

At the Mortgage Hub we work as an independent broker, looking to provide you with the most informed and trusted guidance based on current market offerings.

If you are looking to review your current mortgage offer or indeed are looking to get that first step on the property market, our team are on hand to advise.

Our Hamilton office is open Monday to Saturday, get in touch on 01698 200050 or e-mail to arrange an appointment and speak to one of our mortgage advisors.

Our team will then do all the work to research your options and will work hard to negotiate the best deal for you and your savings.

Banks offer help to mortgage holders

Banks offer help to mortgage holders

Following the latest rate rise that saw interest rates hit 5% on June 22 2023, bank bosses met with Chancellor Jeremy Hunt. Rates went up last month to try and tackle inflation which remains unchanged from the previous month at 8.7%

As a result of the meeting, banks have agreed to offer more flexibility to those struggling with their repayments in the wake of the latest rise in rates. Borrowers can temporarily change their mortgage term to allow them to make lower, interest-only repayments for a short time before reverting back to the original terms.

Moreover, those who opt for this change won’t adversely affect their credit score, which it may have done previously.

Anyone who misses mortgage payments or takes a mortgage holiday that pauses their repayments altogether (something commonplace during the pandemic) will still affect a borrower’s ability to secure lending in the future.

Along with agreeing to let borrowers switch to interest-only to help manage their finances, lenders will delay any repossession proceedings for 12 months.

Cost of living crisis explained

The result of high inflation is that we are still in a cost-of-living crisis; not only are mortgages rising for those on a variable rate or coming to the end of their fixed rate period, but energy prices and the cost of goods and services are stubbornly high.

Those who are renting, they may find that their rent goes up as Landlords’ mortgages rise. Some organisations, such as the National Residential Landlords Association (NRLA), lobby for government action. They are calling for the reintroduction of mortgage interest relief and the unfreezing of housing benefit rates and believe that the current interest rate of 5% will result in landlords selling off as many as 735,000 rental properties which will fuel the ongoing supply and demand crisis across the private rented sector, pushing up prices further.

What is the government doing to assist?

Currently, the government won’t step in to support borrowers as this could undermine the battle against inflation. The government instead aims to stick to the current plan and ‘hold its nerve’.

One of the reasons that interest rates have gone up is to reduce people’s disposable income. So offering more support for mortgage holders could be counterproductive and work against the Bank of England’s policy. Rising interest rates can also reduce economic spending by boosting the incentive to save money. However, this provides little comfort to those unable to make ends meet.

What does this mean for my mortgage?

The average two-year fixed-rate mortgage is currently at 6.19%. According to financial data firm Moneyfacts, the five-year rate is about to hit 6%.

Following the latest rate rise, the average two-year tracker mortgage rate rose to 5.66% from 5.49%. Compare this to June 2022, and rates were half that.

Recently MPs have criticised banks for failing to pass rate rises on in full to savers with easy-access accounts – something that we hope will change shortly.

These latest changes will make a big difference to those at risk of losing their homes because they fall behind in their mortgage payments.

In addition, it will help those who have to change their mortgage because their fixed rate ends, and they’re worried about the impact on their family finances.

Get in touch with Mortgage Hub to discuss your requirements

If you would like to find out about these latest changes and how they could affect you, contact our mortgage specialists at The Mortgage Hub. Our team are available Monday to Saturday on 01698 200050 or e-mail

Interest Rates and Your Finances – what does the rise mean for you?

Interest Rates and Your Finances

Following the May rise in interest rates to 4.5%, many people are now wondering what that means for their mortgages.

Lenders regularly review the interest rates of their mortgage products, adjusting the deals available to those looking to buy their first home or remortgage their existing property.

The Bank of England (BoE) meets every six weeks to decide whether the Base Rate should go up or down or stay the same. Last month, the interest rate went up 0.25% percentage points, from 4.25% to 4.5%.

What does the interest rate increase mean for your mortgage payments?

This rate rise is unwelcome news for those with a mortgage on a variable rate – this could be a base rate tracker, discounted-rate deal, or a lender’s standard variable rate (SVR).

For those on a tracker mortgage, their deal directly follows the base rate, and at 5.25%, their repayments will rise by £21 per month if they have a £150k repayment mortgage with a 20-year term. Compare this to last year; that same homeowner will have been paying £776 a month, indicating a rise in the previous 12 months.

A Standard Variable Rate mortgage goes up at the lender’s discretion. However, these are likely to go up even if not by the total 0.25% percentage points.

For those on a fixed-rate mortgage, this news will not impact their mortgage repayments each month. This accounts for around six million households in the UK – but if their current deal is about to end, they will feel the impact of the increase in their monthly payments. If they are coming to the end of a 2-year fixed rate, they could be used to paying around 1.5 to 2% and will experience a big jump.

US investment group Goldman Sachs anticipates rates will rise to 5% this summer.

Mortgage rates are increasing by an average of 0.39% across all LTVs, and these latest interest rate changes hardest hit those with a 10 or 15% deposit. However, some lenders are trying to remain as competitive as they can.

What does the increased interest rate mean for savings rates?

 The Bank began raising interest rates at the end of 2021, and at this time, the best easy-access savings rate was 0.67%. Following the rate rises, the rates for savers have improved, and the highest easy access savings rate is now 3.71% – this is significantly below the inflation rate of around 10%. Following the recent rate rise, several savings providers have raised rates to be competitive and attract new customers.

For those who don’t need an easy access account, rates of 4.91% are available – but this means tying up funds for two to five years.

The Commons Treasury select committee has recently campaigned to encourage high street banks to increase the savings rates offered to loyal customers. While the online accounts above pay relatively attractive interest rates, easy-access accounts at many big banks still provide meagre returns.

How does the increased interest rate affect credit card and loans?

When interest rates go up, so do the rates on borrowing via credit cards and loans. If you already have a loan, it’s likely to be on a fixed rate, so your repayment won’t change. If you have a credit card, it may be worth moving it to an interest-free offer. However, you will need to pay a transfer fee.

Are house prices falling as a result of the increased interest rate?

According to the latest House Price Index from Zoopla, buyers and sellers are pressing ahead with their plans despite the rate rise. Recent inflation figures might still put a brake on market activity however.

The Index shows that:

  • UK house prices have dropped 1.3% over the last two quarters but this is now a slow reduction.
  • Lower mortgage rates in the first half of this year supported an increase in housing market activity.
  • Confidence is improving.
  • Housing market conditions vary across the country with weaker demand in areas where house prices have risen the most.
  • The likelihood of further interest rate rises may weaken demand and market activity at the end of 2023.

House prices are currently falling slower than they did at the end of last year, indicating some improved confidence from both buyers and sellers. In fact, the number of property sales in the UK has increased due to lower mortgage rates over recent months. The strong labour market has also prevented prices from falling further.

The annual rate of house price growth is 1.9% for the UK – down from 9.6% last year – ranging from -0.2% in London to 3.6% in Wales. House prices are expected to remain broadly the same for the rest of the year despite inflation data currently being higher than predicted. Mortgage rates could rise in the coming months which will impact house prices.

Looking for more information/ mortgage advice?

If you want to know how the recent interest rate rise might affect you, talk to the team at The Mortgage Hub. We can help you with your new mortgage or find a deal if you are coming to the end of your existing deal.

Preparing for the Mortgage Rate Rise

This week, the Bank of England once more raised interest rates in a bid to combat inflation, warning inflation could reach 11% by October. Members of the Bank’s monetary policy committee voted to increase the base rate by 0.25%, taking it to 1.25%.

Mortgage costs and interest rates are rising and if you are one of the 1.3 million mortgage holders due to see their deals end in 2022, it’s important to be prepared and take action now.

Although the ultra-cheap fixed rate mortgage deals have all but disappeared, they are still historically low.

What the rate rise means for mortgages

An increase in the interest rate means that borrowing is more expensive, resulting in less borrowing and more saving. The reason for these rate rises is that with less demand for goods and services, prices fall and inflation will cool.

This latest increase in the Bank of England’s base rate means that over 850,000 people on tracker mortgages and 1.1million on variable deals will see their mortgage rate go up. This accounts for around a quarter of all UK homeowners.

However, most homeowners are currently on a fixed-rate mortgage and won’t notice any changes to their mortgage payments. Those who have a fixed rate deal ending this year, or those with a variable-rate mortgage, are probably wondering if now is the time to remortgage.

If your deal is due to end before December 31st, we would recommend that you start looking now. You can often remortgage within 6 months of your deal ending, but check whether you have any exit fees and determine if these can be offset by any rate rises between now and December.

If you are on your lender’s standard variable rate, you will typically be paying much more than if you were on a fixed rate deal. If you do remortgage, you won’t have any exit fees so it’s worth looking to lock into a fixed deal. According to Moneyfacts a two-year fixed deal is typically 1.66 percentage points cheaper than the average variable rate. Although many lenders have pushed up their variable rate with an average rise of 0.5% percentage points since 2021, not all providers have passed on the rise to their customers.

Moving to a fixed-rate mortgage

At present, the most popular fixed-rate mortgage term is five years, especially as the margin between the average two- and five‑year deal is the narrowest it’s been for nearly ten years.

Ten-year fixed-rate deals are also competitive with rates as low as 2.73 per cent. However, we would advising considering very carefully if you want to be tied in for ten years as you could face large financial penalties if you need to end your mortgage term early. Ten years is a huge commitment.

It’s important when considering whether to end your variable rate deal early to consider how much more you will pay as rates go up again, how much longer your mortgage has left to run and any penalties for leaving.  Mortgages that are linked to a lender’s standard variable rate and tracker mortgages can incur early repayment charges.


If you can, overpaying on your mortgage can make a big difference. An extra £30 a month would reduce the interest bill on a £150,000 mortgage taken over 25 years by over £4,500 based on a 3.25% rate. It will also help you to clear your mortgage early and access better rates in the future. You could also consider an offset mortgage whereby your savings are held in an account linked to your mortgage. Rather than earning interest, it is used to reduce what you owe on your home loan.

Get advice

There are four more Bank of England base-rate announcements this year. The next one is in August, then September, November and December. We can help you check that you’re on the best possible deal and if not, compare the whole market for the most suitable mortgage. Talk to us at The Mortgage Hub for more information and advice.

New Record High for House Prices

According to the latest House Price Index from Zoopla, house prices in April of this year hit a record high with the average cost of a UK property exceeding £250,000 for the first time, reaching £250,200.

During the year to the end of April 2022, the average cost of a UK home went up 8.4% compared to the annual rate of 9% recorded in March – showing that market could be finally slowing down. The time taken to sell a home in the UK has increased and even though the market is stabilising, it is not anticipated that house prices will fall.

Average UK property values went up by only 0.2% in April compared to monthly gains of 0.7% at the beginning of 2022. Wales saw the strongest house price increase at an annual rate of 11.6% in April – in February it was 13%. In Scotland, house prices went up by nearly 7%.  Growth in London was the lowest in the UK at just 3.6%.

Although the market is showing signs of slowing, demand is still outweighing the current supply of properties for sale. The number of buyers is still 61% higher than the five-year average. In contrast, the number of homes for sale is currently 37% lower than normal. However, this is starting to increase – the number of new property listings in the month to 22nd May were 7% higher than the give-year average. In addition, homes took longer to sell than they did in the previous month – and this applies to all property types.

There has also been an increase in the number of properties that have been reduced in price by at least 5%.

The latest House Price Index shows that the market is calming down and as a result, sellers are more realistic about how much their property is worth. The number of properties for sale is increasing which is providing more choice.

For those looking to trade up the property ladder it’s also good news as there is more choice and more willingness for sellers to reduce their price.  Similarly, if you are selling first, you may have to reduce your price if your home is not getting much interest.

It is expected that during the second half of this year, higher interest rates and rising living costs will act as a break on the property market. Mortgage rates are currently higher than they were at the end of last year and the average income required to secure a mortgage on a property worth £250,000 has increased by £4,500 when putting down a 30% deposit and borrowing 4.5 times your salary.

The time taken to sell a property is rising and this is expected to increase further.

With mortgage rates going up, now could be the time to talk to us about your options. Give us a call on 01698 200050.

Is Now Really the Right Time to Buy a House?

The housing market appears to be at its peak. We are seeing record house prices after two years of unprecedented demand and high competition among buyers. Many people are starting to wonder if they should wait until prices fall to purchase a property.

Since December 2021, interest rates have gone up three times now standing at 1% following last week’s rise from 0.75%. There are signs that the property market will start to slow down or even fall, and the latest interest rate rise can already be felt in the mortgage market as mortgage costs have risen.

With inflation eating away at savers nest eggs, a drop in incomes and the rising costs of energy, fuel and food, we are in a cost-of-living crisis.

Does this make now a bad time to buy a home and should you wait for prices to fall?

House price growth, according to Nationwide, stood at 14.3% in February and 12.1% in March. The recent rate rise has caused mortgages to be more expensive and this should slow down house price growth in the coming months. Predictions from Capital Economics show that mortgage rates could rise from 1.8% in March to 3% next year. How much it will fall is difficult to predict – with many market commentators believing it will be a modest fall and simply a price correction.

Although interest and mortgage rates would still be low in historical terms, it will come as a shock to those who are relatively new to the property market and used to very low rates.

Just as there are forecasts that house prices will fall next year many believe that the market will simply slow down progressively over the next few years. The strong employment market and mismatch in supply and demand will continue to underpin property values.

First-time buyers

Any fall in house prices is usually an indicator of a wider economical downturn and first-time buyers are usually the hardest hit in these market conditions. Even if homes are cheaper, mortgage rates and associated costs will be more expensive. According to analysis by Hamptons, the average first-time buyer purchasing a typical home worth £229,000 with a 10% deposit will be paying an extra £612 compared to when the interest rate was 0.75%. So even if property prices drop, monthly repayments will be higher. It’s important to get sound advice from a mortgage broker who can work out the numbers – because waiting to buy could cost more in the long run.


For those who are renting, continued high levels of demand are pushing rents up even further. Therefore, for anyone who believes they will be better off buying than renting, now should be as good a time as any to make the transition to home ownership. Waiting for a house price crash could end up costing a first-time buyer in the long run if this doesn’t happen. In addition, Capital Economics predicts that inflation will hit 8.7% this year, eating into any deposits buyers have managed to save.

Existing homeowners

For existing homeowners, there appears to be a rush to fix mortgages for 5 or even 10 years. According to Twenty7Tec, last month almost 7,000 people searched for a 10-year fixed rate mortgage – a 72% increase on the same month last year and a 25% increase in those looking for a 5-year fixed rate. The number of people who were looking for 2- and 3-year fixed rate mortgages fell by more than 50%. With borrowers’ outgoings rising every month – and set to increase further when the fuel price cap rises in October – borrowers are seeking stability with their mortgage outgoings.

We strongly advise you to get independent mortgage advice if you’re not sure whether to wait or buy now – we can look at your circumstances and help you work out how much you will be paying now, and how much you could pay if interest rates continue to rise but the housing market simply slows down rather than seeing big house price falls. Contact us today.