Mortgage interest rates, when should you act and will they go up or down?

The Bank of England increased the base rate from 2.25% to 3% on 3 November. This was the biggest rise in interest rates in over 30 years.

Annual inflation / consumer price index (CPI) shows that the latest data in October has seen an increase to 11.1%. This is up from 10.1% in September and prices are rising quickly due to the cost of energy, compounded by the war in Ukraine.

The financial markets are therefore pricing in further rate increases in 2022 and 2023, with the market predicting that the Bank of England base rate will rise above 4% in early 2023 and potentially as high as 4.8% by July.

The effect on 2-year fixed rate mortgages could see rates at 6-7% good to hear from you plus.

Should you fix your mortgage rate now?

With the base rate at 3% and markets predicting two-year fixed rate mortgage pricing at over 6%. It is time to seriously consider fixing your mortgage rate, especially if you are worried about how high interest rates might go, and how increased mortgage costs will affect you.

If you are currently on a fixed rate and this is due to end within six months. It is possible to lock in a rate today that will potentially be cheaper than in 2023. You do not need to complete on the new deal until any current early redemption charges have ended.

Historically the best fixed rate mortgages will quickly disappear at any sign of the Bank of England raising interest rates.

Working with MMPE

At MMPE we are working with clients to secure rates as early as possible, trying to beat any further rate increases. We are also aware, that potentially better options may become available, and you may want to keep your options open.

We have therefore been revising our processes and for a small administration fee can assist with securing a preferred scheme up to 6 months prior to your scheme end. Then, schedule a further review, to research options 3 months prior to your completion date. If better options are available, a change of scheme/lender can then be processed. We are hoping that this service will provide peace of mind for our clients and assist with securing the best possible product options.

My Mortgage Experts & Protection Experts Ltd (FCA 937076), is an Appointed Representative of King Mortgages Ltd.

King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register under reference number 803561.

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.


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      Automatic Property Value Updates

      Changes in property value, coupled with a potential reduction in your loan amount (with a repayment mortgage), mean a change in the equity available in your property (Loan to Value); hence there could be improved opportunities for a better mortgage for you.

      Product Expiry Date

      Sussed will track when your mortgage is due to expire (usually when your mortgage payments rise substantially as you will automatically transfer to your lender’s standard rate).

      The app will alert you when it’s the right time to discuss your options with your mortgage broker.

      Sussed can help you plan.

      Rate Riser

      This feature is ideal for today’s economy and increasing prices. Sussed will continually scan the market, looking for the best-fixed rates available, especially when interest rates are rising.

      Using a series of algorithms, our clever technology can identify longer-term fixed rates available today that could save money against predicted rates at the end of your current product term (including the cost of transfer) – sussed is doing all the hard work.

      Equity Available

      With automatic property value updates and your Mortgage information loaded, this feature calculates the amount of equity and the maximum potential loan that may be available within a landlord’s portfolio. This will assist with seeing if there is the opportunity for to perhaps buy another property from leveraging your portfolio.

      Within sussed, you will also be able to see each of your properties with a roadside picture, a confirmed property value, monthly rental, current mortgage balance, payments, interest rate and the Loan to value/Gross rental yield.

      Sussed can help you manage your portfolio.

      Early Review

      This feature is there waiting for interest rates when they reduce. Using the same technology as Rate Riser, sussed will identify if your current deal is now able to be improved.

      Should the interest rates decrease, sussed will compare deals available on the day with your existing deal and flag if there is an opportunity for you to save money by switching.

      Regional Price Limits

      There are price limits on homes you can buy with an equity loan. The limit is different for each region in England.

      • East - £407,400
      • East Midlands - £261,900
      • London - £600,000
      • North East - £186,100
      • North West - £224,400
      • South East - £437,000
      • South West - £349,000
      • West Midlands - £255,600
      • Yorkshire and the Humber - £228,100

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