Banks raise Standard Variable Rates
There is time to avoid any of the high rates if people start the remortgaging process now.
Bank of Ireland has become the latest lender to raise its standard variable rate for mortgage customers, increasing the monthly repayments of around 100,000 borrowers.
The lender said it would be increasing the SVR by 150 percentage points from its current level of 2.99%, but would spread the rise over two stages. In June it will rise to 3.99%, then in September it will increase again to 4.49%.
Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is totally independent and individually tailored to your needs and requirements?
There are so many types of mortgages available that it is easy to become confused, possibly opting for the product offering the lowest headline rate of interest. But when booking and arrangement fees, conditional insurances, high lending charges/ tie-ins and early repayment charges are taken into account, the products may not be as attractive as you might have first thought.
Whether you are buying a home to occupy or to let, the mortgage finance will be crucial to the success of your purchase. The UK mortgage market is the most sophisticated and innovative in Europe, with a huge range of choices to suit all kinds of needs and circumstances. It is difficult enough for the professionals to keep up to date with latest developments in this fast moving environment; for property owners who venture into the market once every few years, the do it yourself approach is fraught with hazards.
Property has proved to be a very profitable investment for many people, but it is important to understand that there are risks. Property values have been known to go down both across the board – as in the late 80s and early 90s – and in particular areas, perhaps as result of regional economic problems or local planning decisions. Paying too high a price or borrowing too much can both be dangerous, especially if the property boom slows down or stops. So it is important to diversify and to be fully aware of the possible downsides. We can help with your strategic financial planning in terms of both the proportion of your wealth you should hold in property and the way you should finance the purchases.
Your home may be repossessed if you do not keep up repayments on your mortgage.