- What does base rate mean for you?
- Don’t’ get stuck with SVR
- Take advantage of a fixed rate
- Get independent advice
It’s common to shop around for great credit cards or the lowest energy bills. But it’s less common to shop around for mortgages. At Which? Mortgage Advisers, we think it’s a great time to start. Why? Because post-Brexit, the Bank of England announced a historic cut to the base rate. It’s down to 0.25% – the lowest rate ever recorded.
It doesn’t mean that everyone’s mortgage repayments are going to get cheaper. But changes to the base rate are often reflected in changes to mortgage rates. And that means you could get a better deal by remortgaging – even if you don’t know it yet.
Here are 4 things to consider:
1. Find out what the base rate means for you
The base rate is the official interest rate set by the bank of England. When the base rate changes, your mortgage repayments could change too. But this depends on the type of mortgage you have, how long you’ve taken it out for, and the amount you’ve borrowed. So first things first – dig out the terms of your mortgage, and check whether any part of it is linked to the base rate. If it is, work out how that could affect the amount you pay each month.
2. Don’t get stuck with SVR
If you took out an introductory deal on your mortgage, you’ll probably end up on your lender’s standard variable rate (SVR) once that introductory period is over. But lenders set their own SVRs. So even if it’s low at the moment, your repayments could suddenly jump up in the future. With the base rate so low – plus all the uncertainties around Brexit – you could be lumped with a significant price hike in years to come. So find out if you’re due to slip onto your lender’s SVR soon. And then think seriously about exploring your options.
3. Take advantage of a fixed rate
The base rate is so low at the moment, that it simply can’t fall much further. So you could find a fixed rate deal that takes advantage of that. You could also be protected from any increases in the base rate during the duration of your deal.
4. Pick up the phone
With dozens of new mortgage deals hitting the market every day – now’s the time to take a serious look at your options. Give Which? Mortgage Advisers a call on 0800 316 4071
You’ll get a friendly, impartial and tailored service. Our advisers will only recommend a remortgage if it could save you money. They’ll even tell you if you’d get a better deal by bypassing Which? altogether, and going direct to other lenders. And best of all, an initial consultation is free. So you’ve got nothing to lose (except your hefty mortgage repayments, of course).
Call our mortgage advisers free to see if you could save on 0800 316 4071
Or ask for a call back at a time that suits you.