Secure your mortgage rate early

James and Clare’s mortgage product was due to expire in 6 months. The couple were worried about the current market turbulence and what their monthly payments would be in the future so they decided to plan ahead.

Following the initial meeting, our team had secured James and Clare a new fixed rate deal at 5.39%; by the time they were due to complete, the rate available to them had decreased to 4.99%, saving them £198.91 per month on their new mortgage repayments.

We monitored the mortgage rates pro-actively throughout the 6-month period, communicating any rate changes with them. By the time the re-mortgage completed, we had changed the rate four times, obtaining a better rate each time.

We advise contacting us at least 6 months in advance of the product expiry date to start planning, for the following reasons:

• You can secure a rate that is affordable early.
• Know how much you will be paying in the future.
• Allows you time to plan and budget if the new rates have increased.

Our team will keep you updated with the following:

• Any rate decreases after you have secured your deal, we will look to secure the new lower rate (criteria permitting).
• Any rate increases after you have secured your deal, you will be able to retain the original deal, if the mortgage completes before the stated offer expiry date.

Changes in the Bank of England base rate have resulted in James’ and Clare’s new mortgage payments being higher than what they had previously been paying. However, the couple were happy as the new monthly payments were still affordable and they would be able to maintain their current standard of living.

Our advisor also went through a detailed budget planner, enabling them to budget effectively and find various other ways they could save money.

Published November 2023.

It is important to take professional advice before making any decision relating to your personal finances. Information within this case study is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.