Borrowers whose current fixed rate deal is coming to an end face much higher costs and should explore their options as soon as possible.
Those who have agreed to buy a home should also check how much they can borrow and monthly payments and consider locking in a deal.
This is Money’s best mortgage rates calculator powered by L&C can show you deals that match your mortgage size and property value
What if I need to remortgage?
Borrowers should compare rates, speak to a mortgage broker and be prepared to act to secure the option of a new rate.
Anyone with a fixed-rate deal ending within the next six to nine months should look into the best rates they can get – and consider locking in a new deal. Often there is no obligation to take it.
With rates spiking right now, if you are planning ahead it is possible that they may fall by the time you need the mortgage. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. By doing this, borrowers can secure a rate without paying expensive arrangement fees.
Ask your broker about this and check if you are obliged to take the rate or could shift to a cheaper deal if rates fall before you take the mortgage out.
What if I am buying a home?
Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be.
Home buyers should beware overstretching themselves and be aware that house prices may fall from their current high levels, as higher mortgage rates limit people’s borrowing ability and buying power.
How to compare mortgage costs
The best way to compare mortgage costs and find the right deal for you is to speak to a good broker.
This is Money has a long-standing partnership with fee-free broker London & County to help readers find mortgages.
You can use our best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.
Be aware that rates can change quickly, so compare rates well ahead of any deadlines and speak to a broker as soon as possible, so they can help you find the right mortgage for you.
> Check the best fixed rate mortgages you could apply for
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