Mortgage rates could increase £600 a year due to interest rate hike - how to avoid rise

Asia's Tech News Daily

Britons who are not on fixed mortgage rate deals risk their lenders raising their monthly payments up to £50 a month. On the Money to the Masses Podcast, personal finance expert Damien Fahy discussed these potential rises, and how Britons can potentially avoid them.

He said: “The majority of people are on their lender’s standard variable rate which means they can move it [mortgage repayments] up and down as they please.

“And it usually has a reference with that Bank of England base rate so when it raises interest rates it means that people’s mortgages leap up.”

With inflation on the rise and set to reach at four percent by the end of the year, the Bank of England could increase interest rates to try and bring inflation down to the controlled two percent target.

He explained that if the interest rates do rise, so will the fixed mortgage rate deals as lenders will raise their prices.

© GETTY Mortgage rates It’s been estimated that the best fixed two-year deal [on a £200,000 mortgage, on a £250,000 house over 25 years], at the moment is 1.24 percent – but by December it could be 1.7 or 1.8 percent.

Mr Fahy said: “You’re talking about a 0.5 or 0.6 percent increase on the deal I’ve mentioned which will push your repayments up to £775 to £832 – so more than a £50 a month increase for the best deals out there.

“The message is mortgage rates are going up if the Bank of England do raise the interest rates.”

Mr Fahy said people should speak to mortgage advisors who can look at the market as a whole and find the best deals for each person based on their circumstances and their earnings.DON’T MISSDave Ramsey suggests how woman, 59, with no pension savings can get by in retirement [INSIGHT]State pension ‘won’t give a nice retirement’ – Britons urged to make ‘other investments’ [EXCLUSIVE]‘A real boost to retirement savings’ – the ‘generous’ alternative to pensions explained [INSIGHT]

He said: “Look at your mortgage, review it this week and decide if you’re going to fix and then do it.”

A fixed-rate mortgage charges a set rate of interest that does not change throughout the loan time period.

People may wish to get fixed mortgages as it is “sensible” if they want to keep their mortgage rates at a set level amidst the uncertainty of interest rates.

Mr Fahy urged Britons to speak to a mortgage advisor if this is a switch they wish to make.

© GETTY Mortgage rates

He explained the reason behind the predicted mortgage rate increase is due to the change in markets.

With the shortage of imports resulting in higher costs for basic raw materials and vital components, the financial markets have brought forward their forecasts for interest rate rises.

They predict the Bank of England will raise interest rates on December 16 in their Monetary Policy Committee meeting, increasing the rate from 0.1 percent to 0.25 percent.

Mr Fahy said: “That doesn’t sound a lot, but it will prove significantto people. It will add tens of pounds a month on the average mortgage in the UK.”

He suggested listeners use a mortgage calculator to find out how much their monthly mortgage payments may increase by.

He continued: “Let’s say you have a mortgage of £200,000 over 25 years, and you put in the interest rate you’re paying and then you put in the increase of the base rate that you think might happen.

“It will then tell you in pounds what your mortgage payments could rise to.

“Play around with it and get a sense of reality for when the Bank of England raise interest rates.”

This increase will only affect people who do not have fixed rate mortgages.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

ANC councillors fight for mayor's position in Ray Nkonyeni Municipality

© Provided by Daily News DURBAN – ANC councillors in Ray Nkonyeni Municipality who want Sikhumbuzo Mqadi to be mayor said they would rather allow the mayoral position to go ... Read more »

DaBaby battery charges dismissed

© Provided by Independent Online (IOL) DaBaby has had battery charges against him dismissed after complying with prosecutors’ requests. The 29-year-old rapper – whose real name is Jonathan Kirk – ... Read more »

Biden and European allies call on Russia to de-escalate Ukraine tensions

President Joe Biden spoke with the leaders of several European allies. AP Photo/Susan Walsh President Joe Biden spoke with the leaders of several European allies on Monday as tensions soar ... Read more »

Donations to political party candidates must now see the light of day after successful court challenge by amaBhungane

The amaBhungane Centre for Investigative Journalism has achieved a landmark victory in the fight against the secret capturing of members of the executive. © Copyright (c) Daily Maverick , All ... Read more »

'Our lives are just as important': Ramaphosa criticises Western nations' handling of Covid-19

© Provided by Times Live Over the past few days on his trip to Nigeria, Ivory Coast, Ghana and Senegal, Ramaphosa has accused powerful nations of hoarding vaccines and a knee-jerk ... Read more »

Las Vegas man gets nearly 4-year prison sentence for pro-Trump and Biden scam PACs, PPP fraud

A Las Vegas man behind scam Trump and Biden PACs and a fraudulent Paycheck Protection Program scheme was sentenced to 46 months in prison on Monday. The big picture: James ... Read more »

U.S., Taiwan discuss chips again, to cooperate under new framework

FILE PHOTO: White House Deputy Press Secretary Karine Jean-Pierre holds a press briefing at the White House TAIPEI (Reuters) – U.S. Commerce Secretary Gina Raimondo discussed chip supply chains during ... Read more »

What the papers say – December 7

The front pages are led by a whistleblower’s claims that the Foreign Office failed to help many Afghans to escape after the Taliban swept to power. The Guardian reports junior ... Read more »

Australia now has skill shortages in 150 jobs - and why 90% of ALL occupations will require study POST-school

 The 'four Cs' ae the key found to be key abilities required in coming years Employers are seeking Data and digital skills are across a growing range of jobsNine out of 10 jobs will require post-school qualifications within five years  Read more »

Half of us can't judge drink-drive limit and believe we are safe to get behind the wheel after boozing, study suggests

Alcohol experiment shows half of us can't judge limit before going behind wheelResearch found up to 53 per cent wrongly believed safe to drive after drinking In the run-up to Christmas, police are cracking down on drink and drug-driving  Read more »

Global money-laundering sting nets 27 Australian 'money mules' trying to move $2.6million in 'dirty cash' through banks using sophisticated romance and job scams

Australian Federal Police operation identified 27 alleged money mules18 people were charged while nine received warnings to cease activities Worldwide operation from 27 countries and netted 1800 people globally$2.6 million was being 'washed' through Australia's financial institutions Read more »

Fully-vaxxed Minneapolis man who became one of the nation's first Omicron variant cases after NYC Anime convention featuring 50,000 people says he is fine after 15 of his friends tested positive too

Fully vaccinated Minneapolis man Peter McGinn, 30, speaks out after he had contracted one of the country's first cases of the Omicron variantMcGinn went to the NYC Anime convention in late November which featured around 53,000 people in attendanceAfter coming home from the convention, McGinn tested positive for COVID before receiving the news that he had contracted the variant almost a week laterHe was surprised by the diagnosis as he had received both the vaccination and booster shotAbout half of the 35-person group he interacted with have since contracted the virus  but it is unknown how many have the Omicron variant Read more »

These Target Holiday Treats Are Must-Haves for the Whole Family — Including This DIY Hot Cocoa Bomb Kit

© Target/SheKnows Besides the gifts and decorations, the seasonal treats are one of the best parts of the holiday season. Treats get a little sweeter, a little more decorative, and ... Read more »

Prison guards could be scanned on entry in bid to crackdown on scourge of drugs in jail

Prison guards could be forced to go through airport-style security scanners to stop smuggling  X-ray body scanners and biometric identification  are part of a major Government crackdown on drugsVulnerable frontline prison staff who may be susceptible to corruption could be forced to use the scanners  Read more »

Navy sailor is found guilty of raping female colleague after booze-fuelled 'naked mess' party

Able Seaman William Stewart attacked the woman at a 'naked mess party'The pair were part of group of sailors who were out celebrating her birthdayVictim said she later woke up to find the 26-year-old engineering technician 'fondling' her breastsStewart was found guilty of rape, assault and causing a person to engage in sexual activity and will be sentenced later this month Read more »

West threatens Putin with 'united front' of reprisals over Ukraine: Boris Johnson joins Biden, Merkel and Macron warning Kremlin of 'significant harm' to Russian economy with sanctions if he invades - but they will stop short of military action

Leaders of  US, UK, France, Italy and Germany held talks on Monday eveningGroup discussed reaction should Putin's Russian troops invade Ukraine as fearedPresident Biden will call Putin shortly to discuss troops build-up near UkraineBoris Johnson vowed to use all 'economic and diplomatic tools at UK disposal' Read more »

Katrina Kaif and Vicky Kaushal Wedding Sangeet: Songs, performances, setting, theme and more - Here's all that you need to know at a glance [Exclusive]

© Provided by BollywoodLife.com Katrina Kaif and Vicky Kaushal are all set to tie the knot on 9th December 2021 at Six Senses Resort in Sawai Madhopur, Rajasthan. The bride-to-be ... Read more »

Zucker fires back at Cuomo: CNN chief tells staff that network will investigate sexual misconduct claim against the fired host and says 'Chris had been much more deeply involved than he'd ever told us'

Jeff Zucker on Monday addressed staff following Chris Cuomo's firing on SaturdayZucker said that he fired the star news anchor because he was far more deeply involved in his brother Andrew's defense than he told themZucker, 56, also said that CNN would continue to investigate allegations of sexual misconduct, made by a woman who worked with Cuomo at ABC NewsOn Tuesday Zucker will hold a staff meeting for CNN employees to discuss any concerns about Cuomo's actions and the company's policiesChris Cuomo has claimed that Zucker was fully aware of the assistance he provided to his brotherHe is reportedly considering legal action against CNN for unfair dismissalOn Monday Cuomo said that he was stepping down from his SiriusXM radio show, citing the stress of his firing from CNN  Read more »

West voices its concern over Russia's military build-up on Ukrainian border ahead of Biden call with Putin

Joe Biden spoke with the leaders of the UK, Italy, France, and Germany ahead of Tuesday's expected video call with Russia's president Vladimir Putin. Read more »

China claims to have ‘democracy that works' ahead of Biden summit

© Provided by Al Jazeera Beijing has launched a PR blitz seeking to undermine the United States’ claim to democratic leadership [File: Carlos Garcia Rawlins/Reuters] China has embarked on a ... Read more »

Mets lining up managerial candidates to fit experienced mold

There are wild cards, and then there are wild cards. There is learning on the job, and then there is learning on the job. If you think Buck Showalter should ... Read more »

Arsenal kena bedil di Goodison Park

© Provided by Sinar Harian EVERTON meredakan tekanan ke atas pengurus Rafa Benitez selepas The Toffees meraih kemenangan 2-1 ke atas Arsenal dalam aksi Liga Perdana Inggeris (EPL) di Goodison ... Read more »

Jeff Ulbrich desperate for fix to Jets' putrid defense: ‘It hurts the soul'

The Jets spent another Monday searching for answers for what happened to them in Sunday’s loss to the Eagles, particularly on defense. Philadelphia rolled up 418 yards and 33 points, ... Read more »

The SRC verdict revisited as clock ticks in Najib's second last countdown

© Provided by MalaysiaNow Former prime minister Najib Razak may be staring at 12 years in jail if the Court of Appeal upholds his conviction for charges related to the ... Read more »

New Zealand won't send diplomats to Beijing Olympics, citing COVID-19

© Reuters/THOMAS PETER FILE PHOTO: A woman walks past the Beijing 2022 logo that is seen outside the headquarters of the Beijing Organising Committee for the 2022 Olympic and Paralympic ... Read more »

Pertahan iltizam pewaris legasi pertanian negara

© Provided by Sinar Harian EPISOD tuding menuding berlaku ketika Malaysia berdepan isu harga barang naik terutama harga makanan asas. Pengguna salahkan peniaga dan kerajaan, kerajaan salahkan orang tengah dan ... Read more »

Donald Trump's media company has a new CEO: soon-to-be-former-Rep. Devin Nunes

© Photo By Tom Williams/CQ-Roll Call, Inc via Getty Images Rep. Devin Nunes, R-Calif., leaves a meeting of the House Republican Conference at the Capitol Hill Club on Wednesday, December ... Read more »

Elon Musk says the US should ‘get rid of all' government subsidies

© Photo by Patrick Pleul/picture alliance via Getty Images Elon Musk said Monday at the Wall Street Journal’s CEO summit that he doesn’t think the United States needs the Biden ... Read more »

Wie man den Hass im Netz am wirksamsten bekämpfen kann

ETH und Uni Zürich haben eine Studie gegen Feindseligkeiten in den Sozialen Medien verfasst. Diese kommt zu erstaunlichen Resultaten. © Foto: Getty Images (Symbolbild) Hasstiraden in sozialen Netzwerken: Eine Studie ... Read more »

Kishore Biyani appears before ED in probe into forex violation

Future Group founder and chief executive officer Kishore Biyani appeared before the Enforcement Directorate (ED) here on Monday in connection with a 2019 deal with Seattle-based Amazon.com Inc, as part ... Read more »

SP will «Einladung zur Steuerkriminalität» an der Urne bekämpfen

Parlament und Bundesrat wollen die Verrechnungssteuer in Teilen abschaffen. Die SP wehrt sich dagegen – und kündigt nun erstmals das Referendum an. © Foto: Alessandro della Valle (Keystone) Bereits zum ... Read more »

Nach dem Mittagessen fand sie eine 3000 Jahre alte Axt

Die 13-jährige Engländerin Milly Hardwick hat eine Axt aus der Bronzezeit ausgegraben. In der Metalldetektorenszene gilt sie längst als Star. © Foto: Action Press Milly Hardwick hat mit ihrem Metalldetektor ... Read more »

Nach Syrien verschleppt – Schweiz bringt IS-Kinder in Geheimaktion heim

Diashow ein Auf dem Weg in die Freiheit: Die beiden Töchter verabschieden sich am syrisch-irakischen Grenzübergang. Malika* wurde mit zehn Jahren von Genf zum «Islamischen Staat» gebracht, jetzt kehrt sie ... Read more »

Saudi Crown Prince leaves Riyadh for Official Visits to GCC Countries

© Provided by Ajel News Saudi Arabai’s Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, Deputy Prime Minister and Minister of Defense, left Riyadh on Monday in an official ... Read more »

Sole acquires stake in UAE basketball league Ball Above All

© Motivate Publishing Sole DXB Contemporary culture platform and operator of the annual Sole DXB festival, Sole, has acquired a stake in the UAE’s basketball league, Ball Above All. Together, ... Read more »

A US Cruise Ship Had a COVID Outbreak Even Though Full Vaccination Was Required—Here's What You Should Know

© Getty Images At least 17 people who were on the Norwegian Cruise Line ship have tested positive for COVID-19, with one of those cases likely being the Omicron variant. ... Read more »

8 cult buys that will make beauty lovers swoon

© Motivate Publishing Rosie HW December’s – ‘The Winter Escape Issue’ – Download Now As December calls for gifting and some self-indulgence, there’s an array of beauty products to keep a ... Read more »

Revolutionising the education ecosystem with artificial intelligence

© Motivate Publishing Geoffrey Alphonso – CEO of Alef Education Last year, as the Covid-19 virus engulfed the world in a critical pandemic, 1.5 billion students were impacted due to ... Read more »

Omicron vs Delta: Battle of coronavirus mutants is critical

© Provided by Khaleej Times A photographer takes photo of a projector image showing immunofluorescence staining of omicron infected Vero E6 cells in Hong Kong. — AP As the Omicron ... Read more »

Saudi Crown Prince arrives in Oman on an official visit

© Provided by Khaleej Times Saudi Crown Prince Mohammad bin Salman bin Abdulaziz being received by Oman leaders at the Royal Private Airport. — Courtesy: Twitter Saudi Crown Prince Mohammad ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic