April Mortgage Market Update
According to the latest data from MoneyFacts, the price gap between fixed-rate and SVR mortgages has reached a record high. In our April Mortgage Market Update, Adam Nanson, impartial mortgage broker at Your Mortgage Expert in Salisbury discusses what this means for home owners. And, what the options are available to prevent you paying the Standard Variable Rate.
Why is the Standard Variable Rate so high?
The standard variable rate, or SVR, is the interest rate that will be charged once your current mortgage deal comes to an end. With an SVR mortgage, your mortgage payments could change each month, going up or down depending on the rate.
Each lender will charge a different SVR and the lenders are influenced by the Bank of England Base Rate. Interest rates in the UK have been steadily rising over the last 16 months as the Bank of England attempts to curb inflation. The base rate now sits at 4.25% after being increased 11 times in a row. As a knock on effect, the Standard Variable Rates are the highest since 2008.
How do I avoid paying the Standard Variable Rate?
SVR mortgages tend to be higher than most other mortgage options. Which means that if you revert to the SVR when your current deal comes to an end, it could be expensive.
Figures from MoneyFacts also show that both two year and five year fixed mortgage rates have fallen consistently for the last four months. In fact, the average two and five year fixed rate deals are at the lowest they have been for six months*.
So, if your mortgage deal is coming to an end, it’s worth shopping around to see if you could find a new deal that could save you money. And with a fixed term deal you also have the security that you know exactly what your monthly bills will be and don’t have to worry about whether your lender’s SVR will go up again.
How can Your Mortgage Expert help?
Your Mortgage Expert is an impartial mortgage broker. This means we can advise you from a range of deals from across the market. We have knowledge of many mortgages available from different lenders. We can search the market on your behalf and recommend the most appropriate deal for you.
Of course you could do the research yourself. But to find these deals on your own would take a lot of research and talking through your financial and personal circumstances with different lenders. We also have access to lenders that are only available through brokers like us.
If you have any further questions after reading our April Mortgage Market Update, why not get in touch today for a no obligation, free conversation. We don’t charge anything up front, so by speaking to us, you are under no obligation. We are based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683 or complete a contact us form on our website and tell us when it would be best to get back in touch with you.
*Source: https://moneyfactscompare.co.uk/news/mortgages/fixed-mortgage-average-rates-at-a-six-month-low/
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. Your Mortgage Expert Ltd and Mortgage Advice Bureau cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation.
You may have to pay an early repayment charge to your existing lender if you remortgage.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 2% but a typical fee is 0.6% of the amount borrowed.
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You may have to pay an early repayment charge to your existing lender if you remortgage.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.