Inflation in the UK has reached its highest point in nearly three decades. According to new figures from the Office for National Statistics, the inflation rate in December 2021 was 5.4%, and it has the potential to get even higher over the coming months.

To combat this, the Bank of England has raised the base rate from 0.1% to 0.25%, with the option for further increases if necessary. A change to the base rate will result in changes to interest rates across the financial sector, including mortgages.

So how can working with an expert be beneficial at a time of rising interest rates? Read on to find out more.

1. An expert can help you save money on your existing mortgage

If you have a variable-rate mortgage, then it may be worth looking to switch deals, either with your current lender or a new one. This is especially true if you are on your provider’s standard variable rate (SVR), as these can be more expensive than other products.

By working with us, we will be able to help you identify alternative deals that will be appropriate for you and your circumstances. We also have access to deals that are only available to mortgage brokers, giving you even more choice.

We can compare the relative costs of a wide range of deals, including their interest rates and additional fees, to find the most suitable product for you.

For example, changing your mortgage deal midway through your term will often trigger an early repayment charge. In some cases, the early repayment charge may not make it cost-effective to switch, as the cost might outweigh any savings you make.

2. An expert can help you secure low-rate deals before they disappear

When interest rates rise, many lenders withdraw their very cheapest deals and often increase the cost of their fixed-rate products.

However, we can help you adapt to the fast-changing market by finding and reserving specific deals before they disappear.

Many lenders offer you the opportunity to “reserve” a product, perhaps by paying a booking fee. We can also work with a lender to reserve the funds you need on a certain deal on your behalf.

As mortgage experts, we will often be notified when lenders withdraw products from the market, meaning that we can act quickly to ensure that you have access to all potential deals.

If you are approaching the end of your fixed- or tracker-rate deal, working with us to secure a new product in time for your remortgage could save you a significant amount in interest in the long term.

3. An expert can save you time, effort, and money

Researching and securing the best mortgage deal on your own can be stressful, complicated, and time-consuming. Not only might you need to scour through lenders and comparison sites for hours, but you also need to understand how mortgages work to figure out whether each deal is actually right for you.

By working with us, you can relax knowing that we will do the hard work on your behalf. We know where to look for the best deals, including some that are not available direct to borrowers, and understand that the perfect mortgage deal isn’t necessarily all about the interest rate.

Plus, mortgage brokers aren’t just experts in securing mortgage deals; we also have detailed knowledge of underwriting criteria, helping you to find a lender who is happy to lend based on your unique circumstances.

In fact, FTAdviser claim that 32% of UK borrowers have been rejected by a mortgage lender at least once over the last five years.

To find out more about how our expert mortgage advice could help you, get in touch. Email or call us at 0207 808 4120.

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