Mortgage Market update for May
Adam Nanson from Your Mortgage Expert provides the Mortgage Market Update for May. Here, he talks about the latest decision by the Bank of England to increase the base rate. And what it might mean for your monthly mortgage payments.
On 5th May, the Bank of England increased the base rate to 1% from 0.75%. Their aim is to bring inflation down after the cost of living has risen sharply over the last year. Adam Nanson from Your Mortgage Expert in Salisbury comments on what this rise means for your monthly mortgage payments.
What should I do about my mortgage?
“Following the Bank of England base rate increase to 1% announcement, we have received lots of calls from clients asking what they should do about their mortgages. Should they fix, switch or stay is a question we often get asked.
“The answer, depends on the type of mortgage that you currently have. So, I’ll address each one in turn.
- Fixed term mortgages
Most of our mortgage clients have a fixed-rate mortgage. If this is you, then nothing will change with your existing deal. However, it is worth checking when your fixed term deal is due to end. If you are nearly at the end of your current fixed term, it might be a good idea to contact us to look for a new arrangement. As rates are changing at the moment, it might be prudent to lock in a new rate sooner rather than later. You can often lock in a rate up to six months prior to yours coming to an end.
- Standard Variable Rate mortgages (SVR)
If you are on the SVR, it’ll probably be because your fixed rate or tracker has ended. These can be more expensive than other types of mortgages. And, are likely to increase now the base rate has gone up. With this in mind, it might be worth getting in contact with your mortgage broker to see if you can change to a fixed term rate or something cheaper.
- Tracker mortgage
These track the base rate, so your monthly mortgage payment will increase. You will probably have picked a tracker rate because the base rate has been so low for quite a while now. If you are worried that your payments might be too much now, then get in contact with us. We will look to see whether we could save you money on a different arrangement such as a fixed rate. We can also look to see if you have to pay any penalties such as early repayment charges for switching.
We will, of course, be watching the markets carefully. If you want the latest information and the most informed across market understanding, we would recommend you speak to an impartial mortgage broker like Your Mortgage Expert.
Searching the market yourself can be time-consuming. But with our help, we can search thousands of mortgages, including exclusive deals and lenders that you wouldn’t otherwise have access to. We have regular contact with a wide range of lenders, some of whom you may not even know exist! With our help, you won’t have to search or contact each individual lender in order to compare the mortgage terms and rates; we’ll do all that for you.
Have you read something in the Mortgage Market Update for May that you want to talk to us about? If you are interested in having a no obligation chat about your mortgage, why not get in touch? 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.
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“This was knight in shining armour stuff. Our conscientious mortgage broker was a delight to deal with from the off and the key to our dream home.”
Max and Martha, First Time Buyer customers from Cardiff
“Being in the Armed Forces I am away a lot, meaning it can be hard to attend meetings, answer emails and especially hard to fill in forms. Adam and his team were extremely helpful and understanding of our situation and provided help wherever they could. After our initial meeting where we provided our required details, we actually did very little of the hard work, apart from signing a couple of papers.”
Callum and Verena, First Time Buyer Armed Forces Mortgage Customer from Salisbury
“I expect my circumstances were fairly rare, but the help and guidance I received from you was invaluable. I feel that the personal touch you provide offers something that appeals to the soldier in me. During my service I always liked to have a point of contact, someone who was the “go to” specialist in their field. This provides a degree of assurance about a situation and it was refreshing to find that same degree of certainty transitioning to civilian life, particularly with something as important as a mortgage and buying our family home.”
Andrew and Helen, Armed Forces Mortgage Customers from Salisbury
“Even though we were used to having a mortgage on the rental property, paying a mortgage on your own home was still a bit of a shock after years of having married quarter rental deducted from your pay at source. But, at every step along the way, we felt reassured, understood and that we really mattered to Adam. Trust is an important concept for military families and we trusted Adam.”
Fiona and Graham, Armed Forces Mortgage Customers from Wilton
“As a contractor, it was difficult for me to obtain a mortgage through normal channels so it was great to find a mortgage adviser that specialised in contractor remortgages and understood the challenges. In addition, I had fairly tight timescales, so wanted someone who could make the process quick and hassle free.”
Andrea, Contractor Mortgage Customer from Warminster
“I am a contractor, therefore require specialist mortgage advice. Adam has now concluded two mortgages for us (new mortgage then a contractor remortgage), and is currently arranging a buy-to-let mortgage for us. He also arranged our life insurance for us. We keep returning to him for some great reasons – he is always available, and ready to help. He provides great advice, and always ensures that he meets our requirements exactly. He is prepared to explain things in such a way that even a lummox like me can understand, and his level of service has remained consistently good over the last three years.”
Matt, Contractor Mortgage Customer from Southampton
“Adam’s advice on the different types of critical illness and life insurance were really useful. He also worked with us to decide the best combination of policies that would work with our existing policies to cover our needs. When doing this he happily tweaked quotes for us until we came out with an arrangement that was both affordable and would provide us with the level of cover we thought appropriate.”
Hannah and Steve, Protection Insurance Customers from Stamford
“Adam provided us with factual advice and also with options of which we were unaware. The advice on gifted equity was something we hadn’t heard about and this assisted us hugely to ensure repayments worked within our affordability. He provided us with a very personal service that made the journey from initial call, to mortgage offer and completion hassle free. We have already recommended Adam to someone and will continue to recommend his services in the future.”
Saul and Laura, Home Mover Mortgage Customers from Salisbury
“Mike and I collected the keys to our flat this weekend and we couldn’t be happier. It’s been a long time coming but we got there! We just wanted to say a MASSIVE thank you for everything you have done for us so far. We’ve really appreciated all the help, advice and reassurance you’ve given us all the way through this process. It’s really nice to have a friendly voice on the other end of the phone.”
Mike and Bethan, First Time Buyer Mortgage Customers from London
“Without question Adam found me a deal the estate agent’s broker couldn’t. He was very easy to contact whenever I needed him and he took time to explain the ins and outs of the Help to Buy equity loan scheme mortgage that he found me. I would rate him five out of five and will be back to use him when the time comes to remortgage or move.”
Chris, Help to Buy Mortgage Customer from Southampton
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