How do higher mortgage rates affect you?

Oct 23, 2023 | Mortgages

Whether you’re a first-time buyer getting a foot on the ladder or a homeowner looking to remortgage, finding the most suitable mortgage can be a challenging task.

Not to mention having to factor in the cost of a broker fee – additional costs are the last thing you want to have to think about if you’re already facing mounting financial pressure.

It’s no secret that times are hard for a lot of people at the moment. After years of economic turbulence, with interest rates soaring, it’s a worrying time for current and prospective homeowners.

But we’re not here to scare you. We’re here to give you the facts, as well as the solutions.

The current market

Mortgage rates hit a 15-year high earlier this year, with Moneyfacts reporting the average two-year fixed mortgage rate increased to 6.66% in July 2023.

This surpassed the previous peak in October last year, which was prompted by the disastrous mini-budget in September 2022 and Liz Truss’s resignation as prime minister. It was also the highest level since August 2008 and the financial crisis.

The market seems to have shown signs of recovery since then, with two-year fixed mortgages dropping to 6.5% and five-year fixed mortgages dropping to 5.99% in September. But these are still historically high levels.

Indeed, research shows that more than half of homeowners think affordability is the biggest issue in the property market in 2023. This is unsurprising given that more than 1.4 million households renewing a fixed mortgage in 2023 are facing the prospect of interest rate rises.

If you’re one of these people, you should consider getting in touch with Roebuck. With years of experience and an in-depth understanding of the mortgage market, we can help offer practical solutions when trying to lock in the best deal possible.

Remember, we can secure a new mortgage deal six months before the expiry of your current mortgage. So even if your mortgage isn’t due to renew for a few months, talk to us – we can find a deal in advance and continue to offer you the expert advice we’ve spent years providing to people in your situation.

Why we’re different

We’re ‘whole-of-market’ advisers – this gives us (and you) a massive benefit as we’re not tied to one lender or limited to a list of mortgage providers. We can therefore consider a much wider range of mortgages to find the one most suitable for you.

Like all brokers, we receive a payment from the lender when the mortgage completes. The difference is that, unlike other mortgage brokers, we simply choose not to charge our customers a fee on top of this. Other brokers could well charge you a broker fee of £350 to £500, plus commission.

In these uncertain times of inflation and high-interest rates, we don’t see it fair to charge you more than necessary. That’s our ethos, and it’s how we do business.

What next?

With the constant worry over financial security homeowners are facing, it pays to have a professional team on hand to help you lock in the best deal on your mortgage. In fact, the sooner the better.

We’ll help you secure a deal six months before the end of your current mortgage so you can rest easy knowing you won’t pay a penny more than necessary. Don’t let the market work against you.

Get in touch with a member of the team to discuss the best ways to ensure your mortgage rate doesn’t skyrocket this year.