• Tue. Jul 23rd, 2024

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A mortgage and protection advisor based in North Tyneside has spoken out after being bombarded with panicked calls since the Bank of England announced its interest rate rise.

Martin Graham, who owns MG Financial Solutions, says there is a misconception on the impact of the rate change and that it isn’t all doom and gloom.

The rise of 0.25% to 0.75% is still relatively low, and there are plenty of good mortgage rates to benefit from.

Martin, who leads a team of four experts with over 30 years experience in the industry between them, said:

“All the lenders have shown signs since the interest rate rise that it is just business as usual.

“There are lots of great mortgage offers with competitive rates still available. The difference in rate increase doesn’t seem to have had any knock on effect on their appetitie to lend or on the cost of borrowing enormously.

“It is also worth reiterating that if you are in a fixed rate mortgage, it is just that – fixed. Your payments per month will not change until you come to the end of your fixed deal. At that point, if you liaise with a good mortgage broker, you will be able to secure a new fixed rate. It may be slighter higher than what you pay now, but there will be plenty of viable options.

“However if you aren’t on a fixed rate, and you are on the standard variable rate, now is a really good time to secure your two, three or five year deal.

“The current rise on a mortgage of around £200,000 will only be about £20. That is not too impactful, but if the rate keeps rising you will be glad you secured a fixed rate and that your monthly payments stay the same.

“Fixed rates are still starting from about 1.69%, which in comparison to years gone by is very healthy.

“Some lenders are offering up ten years fixed – but you must remember that with that is less flexibility and penalties should you want to move or circumstances change.

“It has surprised me how many people seem to have panicked – afer all this rate rise has been expected for a while now. It should certainly not put you off buying a house. This is a great time buy, with house prices nice and stable, the market doing well and some great choices from lenders.”

If you are unsure how the rate rise has affected you and you want some impartial advice on your options, then get in touch with Martin and his team at www.mgfinancialsolutions.co.uk