The majority of homeowners reckon that mortgage rates will increase in the six months from May 2014, although a much smaller proportion of people plan on remortgaging ahead of any rise.
Equifax has found that 62 per cent of householders think that lenders will up their rates before winter, although only one in ten reckon that they`re going to switch to another home repayment plan, even though they could end up paying much more if they do nothing.
Andrew Webb from the credit score firm admits that this surprisingly low number could be down to people choosing "fixed rate deals that will protect them in the short term", but he adds that it`s important that people look further ahead, particularly now that the new Mortgage Market Review rules are in place.
As well as being at the mercy of the base rate change, if your mortgage product runs out and you don`t pick another, you may be automatically put onto your current lender`s standard variable rate, which may well to cost you more.
With remortgaging though, you need to be aware of any break fees, which mortgage lenders call early repayment charges, that may be triggered if you move between lenders. As these could negate any savings made by each month it may be wise to speak to an experienced mortgage advice gicing firm such as First Choice Finance who have 25 years experience looking into these details for our clients.
Our in house adviser team will find the most suitable deal for you from our panel of products and offer it on a no obligation basis to decide if you want to go ahead or not. You can chat through your scenario under no pressure by calling us on 0800 298 3000 on a landline or 0333 003 1505 on your mobile. Failing that enquire online at firstchoicefinance.co.uk.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.