Switching Interest Rates Mid Term

Switch mortgage termSwitching Mortgage Rates Mid – Term

Manchester Mortgages are receiving many enquiries from mortgage holders who are concerned about how they are going to afford the increasing interest rates rises on their mortgages. One of the answers is to switch mortgages mid term to one with a lower interest rate.

The Bank of England’s base rate is at 12 year high with every indication from the Bank’s policy committee that rates are going to increase even further. Mortgage holders are wanting to know how to switch their current mortgage to a lower fixed rate mortgage. Doing this will frequently incur early repayment charges but will protect against potentially much higher rates at the end of their current fixed rate term.

So what should clients take into consideration ?

The obvious thing to take into consideration is what is the actual early repayment charge will be.

Early repayment charges can potentially be offset against the increase in the property value which has occurred predominantly over the last two years. Essentially you would be taking the increase in the property value to pay the early repayment charge. By doing this you will be potentially reducing the equity in the property.

Other enquiries have been by clients looking to remortgage their property so they can take out equity to pay for home improvements. 

Careful consideration needs to be taken if remortgaging is the best option. It may be possible to take a further advance with your current lender (this will be dependent on the terms and conditions of your existing lender).

Another option will be to take a second charge with another provider if remortgaging  is not an option with your current lender.

A number of enquiries have come from clients who are looking to consolidate unsecured debts like personal loans and credit cards to reduce their outgoings now with the increase in the cost of living.

It is important that people receive full advice and are fully aware of their options before they make a decision.

There are lots of adverts on social media advising how easy it is and provide low rates to attract attention. While these adverts grab a person’s attention, the fine details are often more tricky.

At Manchester Mortgages we have been providing advice to clients within Greater Manchester and beyond for in excess of 30 years tailoring a recommendation to your personal circumstances which is relevant to you now and in the future.

Manchester Mortgages are independent and have access to the whole of the Market when providing a solution.