Mortgages: What to do about rate rises

The Bank of England announced another 0.25% rise to 4.25% yesterday.

Firstly, don’t panic.

Fixed Rates

If you have a fixed rate your payments will remain the same until the rate expires.

Tracker Rates

If you have a Tracker mortgage your payments will increase.

Discounted rates

This depends on your lenders variable rate and they will announce if this will change.

Don’t re-mortgage without considering all the costs.

Mortgage rates shot up in October last year but have come down since the new year.

  1. Make a note in your diary 6 months before it is due.
  2. A Whole of Market Broker will be able to advise on whether your existing lender offers better deals than WOM.
  3. You can secure a mortgage rate up to 6 months before your rate expires and switch if rates come down further.