A mortgage expert has issued a note of caution to everyone with a mortgage this week following drops in mortgage rates which have led households to consider switching to a better deal.
A couple of years ago, the outlook for mortgages and remortgages looked bleak, as the Liz Truss/Kwasi Kwarteng mini-budget sparked panic in the industry and saw rates shoot up almost overnight to peaks of 6-8% from a starting point of historic lows.
Since then, the market has slowly cooled off again, and this year some lenders have begun to offer the first sub-4% fixes seen in years.
Many who have been locked into fixes over the past few years will be looking at remortgaging this year – and will be trying to time their deals perfectly to secure the best rates.
Now, mortgage expert Islay Robinson, CEO of finance brokerage firm Enness Global, has urged customers to hold on a little bit longer to get the best deal possible.
Islay Robinson, CEO of Enness Global told the Express: “I’m telling the vast majority of my clients to hold off fixing for a little while longer.
“Based on current guidance and predictions, the base rate and mortgage rates should fall over the course of the year.
“The questions are how far can they fall, and how quickly. The position can turn on a sixpence at any time – just like it did after the chancellor’s maiden budget last year.
“Our guidance is either stay where they are, transfer onto a tracker with the their current lender or a new lender, so long as it has no early repayment charges.
“For those purchasing a property the advice is the same – base rate tracker with no repayment charges.
“Quite a few lenders, and especially private banks, allow their clients to switch to a fixed rate at any time, often with only a lender fee to pay. So, pick one of those, ride the base rate down and then lock in when it feels like the bottom of the cycle.
“A good broker will manage this all for you and give you lots of up to date commentary and advice.
“For those with less time to think about this, or for those who want certainty of budget or those for whom a slightly higher monthly cost is worth the peace of mind today, you can get 2 year fixed rates for just under 4%.”
