Borrowers whose current fixed-rate contract is coming to an end are facing much higher costs and should explore their options as soon as possible.
Those who have agreed to buy a home should also check how much they can borrow and monthly payments and consider closing a deal.
This is Money’s best mortgage calculator powered by L&C that can show you deals that match your mortgage size and property value
What if I have to borrow again?
Borrowers should compare rates, talk to a mortgage broker, and be prepared to take action to secure the option of a new rate.
Anyone with a flat-rate contract expiring in the next six to nine months should look at the best rates they can get — and consider getting a new contract. Often there is no obligation to take it.
With rates currently rising, it’s possible if you plan ahead they could fall by the time you need the mortgage. Most mortgage agreements allow fees to be added to the loan and are not charged until it is closed. By doing this, borrowers can secure a rate without paying expensive arrangement fees.
Ask your broker and check if you are required to take the rate or can switch to a cheaper deal if rates drop before you take out the mortgage.
What if I buy a house?
Those with an agreed home purchase should also aim to secure rates as soon as possible so they know exactly what their monthly payments will be.
Homebuyers should be careful not to overextend themselves and be aware that house prices could fall from their current highs as higher mortgage rates limit people’s borrowing and purchasing power.
Compare mortgage payments
The best way to compare mortgage rates and find the right deal for you is to talk to a good real estate agent.
This is Money has a longstanding partnership with free broker London & County to help readers find mortgages.
You can use our best mortgage interest calculator to display deals that match your home value, mortgage size, term and fixed interest needs.
Keep in mind that rates can change quickly, so compare rates well in advance of any deadlines and speak to a broker as soon as possible so they can help you find the right mortgage for you.
> Check out the best fixed rate mortgages you can apply for