The 2 million people on a variable rate will probably already have had triumphant messages from their bank. For example, a 25 year repayment mortgage for £300,000 will go up by circa £90 a month.
I’m in the middle of selling a flat, my lovely fix came to an end 2 months ago and I’m on the “Scr3w You Loyal Customer” ‘special’ variable rate until completion happens. It took my bank 29 minutes after the announcement to text me with a “ha ha you’re gonna pay us more” message yesterday.
If you have a fixed rate, it’s worth checking when this is coming to an end. If it’s over the next 12 months, then just check what your repayments might go up next year.
I checked a big bank’s rates today. On a £500,000 property, with a mortgage of £400,000, a 2 year fix now is 3.4% which is £1,980 a month on a repayment basis.
There are loads of mortgage calculators online – it’s worth just having a look so you know what’s coming down the line.
A key message as always is that LOYALTY DOESN’T PAY with most financial services providers so always shop around and see if there are better alternatives.