Property prices continue to hit new highs as pent-up demand from lockdown and demand for out of town and coastal property continues alongside others returning to our towns and cities for work with demand higher for urban flats and apartments.
This means that the equity in your home as an existing homeowner is up.
Inflation is up.
Interest rates are up.
We believe it is time to fix your mortgage interest rate and lock into lower rates before they increase.
Given that you now have a much greater percentage in equity meaning you can secure more a more attractive mortgage deal. For example, you may have bough your home with just a 5% or 10% deposit meaning your mortgage interest rate was at the higher end. Now that your property has increased and you may have 25% or more in equity, you will likely secure a more competitive mortgage interest rate.
For the first time in many years, 2-year fixed rate deals are more expensive that 3-5 year fixed rate deals.
Even the owners of this site, recently re-mortgaged a property from a 5-year 2.74% deal to a 5 year 2.24% 5-year fixed rate, saving money each month when the cost of living is rising.
If you are on a standard variable rate or coming to the end of a lock in period on an existing mortgage deal, then no problem. If you are still in a discounted period or fixed rate period and have penalties to exit early, think very carefully before thinking about re-mortgaging.