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House prices: THIS could save you money on your mortgage rates



HOUSE prices on property for sale his high in some parts of the country, but quick action will save millions of homeowners money on their mortgage.

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House prices in the UK are causing lenders to increase their mortgage rates. The next Bank of England monetary policy committee meeting is now just under three weeks away and will take place on 2nd November. 

Predictions of a 0.25% increase on the Bank of England base interest rate are rife, having been fuelled by the Governor of the Bank of England Mark Carney stating last month that he expects an interest rate rise in the ‘relatively near term’. 

According to the Bank of England, 43% of homeowners are currently on variable or tracker mortgages, which opens up the possibility for millions of households to see an increase in their monthly expenditure in the lead up to Christmas, as it’s likely that should the interest rate rise in November, lenders will apply the increase to the mortgage payment, impacting the penultimate pay packet before Christmas. 

But it’s not too late. Borrowers who’ve not taken action still have time – just – to apply for and fix their mortgage before the interest rate decision is announced, with Mortgage Advice Bureau (MAB) releasing their current remortgage Best Buys today. 

  • Houses in the UK


    House prices: Buying property for sale? Save on mortgage rates with this

    As Brian Murphy, Head of Lending at Mortgage Advice Bureau explains, “An interest rate rise of 0.25% will take the bank rate up to 0.5%, which is still a very low figure. However, even just the hint of an interest rate change has already prompted a plethora of lenders including Barclays, Natwest, Nationwide, Halifax and Santander to withdraw some of the lowest rates that were previously available on the market, and a rate rise would undoubtedly have a further impact on product availability.”

    Brian continues, “For example, just two weeks ago, there were a number of 2 year fixed rate products available for remortgage customers that were below 1%, and by comparison just a fortnight later, we are now seeing lows of circa 1.12% for 2 year fixed deals, together with similar increases across 3 and 5 year fixed deals.”    

    So how do you beat the deadline and bag a rock bottom mortgage rate before they go up? 

    Well, it’s possible but you’ll need to get yourself organised and make sure your paperwork is ready to go from the outset to ensure that the process moves as quickly and smoothly as possible and, crucially, ensure that you get your new rate agreed before the 2nd November.  

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    The main thing that will slow down your application is not having all your documents ready for submission to your broker or lender, so if you can ensure you have everything to hand before you start, that’s going to help your chances significantly in terms of achieving a swift remortgage, which can be achieved in many cases within three weeks, but only if you’re organised. 

    Get your paperwork together 

    Before you go and see a mortgage adviser, one of the most important jobs you can do is to get yourself organised with the various pieces of important documentation you’ll need to present.  They vary slightly depending if you’re employed or self-employed but having them all in place as early as possible will help you to complete your remortgage in the shortest time possible: 

    If you’re employed: 

    Three months of recent payslips 

    Your last P60

    Three months of recent bank statements 

    Two utility bills to prove your current address (these can’t include a mobile phone bill) 

    Your passport OR birth certificate



    House prices: Quick action will save millions of homeowners money on their mortgage

    If you’re self-employed: 

    • Three years’ of audited accounts, signed off by a qualified accountant (some lenders will accept two years, but check before you go to your meeting with the mortgage adviser to be sure) 

    • Three years of your SA032 – this is the document issued from HMRC to prove how much tax you’ve paid, so supports your earnings claim

    • Three months of recent bank statements 

    • Two utility bills to prove your current address (these can’t include a mobile phone bill) 

    • Your passport OR birth certificate

    independent mortgage broker

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    House prices: Predictions of a 0.25% increase on the Bank of England base interest rate are rife

    Also, make sure you know what any direct debits or standing orders are for and have the balances to hand for any outstanding credit cards, store cards, personal loans or personal finance.  Again, this is all information your adviser will need and will ask you for, so if you want your remortgage to go through quickly, have this information ready as well so that you don’t create a needless delay in the process because you didn’t know and have to go away and find out. 

    Check your current deal

    Speak to your current lender as soon as you can before you start the remortgage process to establish exactly how much you owe on your existing mortgage and also to request a copy of your mortgage statement so that you’ve got your mortgage account details to hand, as your adviser will need these details for your new remortgage application.  Finally, it’s advisable to check with your existing lender to determine whether there are any early repayment charges (ERCs), and if so find out on what date you will be able to repay the mortgage without incurring charges. 

    Follow Louisa on Twitter: @louisafletcher

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