Money The Flyer
Should you fix your mortgage rate now ?
Terry Weller
This month ’ s Finance article from Terry Weller , an Independent Financial Adviser with Lifetime Financial Solutions
With attractive fixed rate mortgages currently on offer for 2 years , 5 years or even longer . Fixing your mortgage rate will avoid any nasty surprises in increases of interest rates and in turn your mortgage repayments .
Because rates are low since the Bank of England reduced the Base Rate to a record low of 0.25 % last Summer , fixed rate mortgage interest rates are also at an all time low . With Trump and Brexit you may have your own opinion of what will happen to interest rates in the future , I am not going to speculate . However , changing your mortgage to a fixed rate will guarantee that your repayments will remain fixed for the period of time of your choosing whatever the future holds for interest rates .
You may have had a fixed rate mortgage in the past , due to falling interest rates when your deal expired and your mortgage reverted to your lender ’ s Standard Variable Rate ( SVR ) your mortgage repayments may have actually reduced , and when the Base Rate reduced last Summer the payments fell even further . If the Bank of England decide to increase rates in the future , your lender may well decide to increase their SVR , and you will be faced with an increase in your monthly mortgage repayments . If you mortgage deal has ended and you are on your lender ’ s Standard Variable Rate , it is unlikely that you will have to pay a penalty to re-fix your mortgage rate . If value of your home has increased since to first took out your mortgage you may have access to some of the cheaper mortgage products as your “ Loan to Value ” ( LTV ) may have reduced . LTV is about how much mortgage you have in relation to how much your property is worth .
The best Standard Variable Rates are currently a little under 4 % but the best fixed rate deals are under 2 %. A reduction of interest rate by 2 % could mean a reduction of around £ 100 per month for a £ 100,000 mortgage . That is a saving of £ 6,000 in 5 years , even if rates remain the same .
A qualified independent mortgage broker will look for the best mortgage for you . They are not on the lender ’ s side , they are working for you , and they ’ ll
give you access to far more products than if you went direct . You will get unbiased advice and the ability to choose from a wide range of lenders and subsequent products , rather than being restricted to the single range of the lender you selected yourself .
A mortgage broker takes your whole circumstances into account to recommend a suitable product , and it ’ s that methodical , professional look at your finances that makes advice well
Martlesham in Bloom
Martlesham Common – Survey of flora and fauna
Martlesham in Bloom is arranging for the wildlife on Martlesham Common ( including the flora and fauna ) to be surveyed to help the Parish Council with their management of the Common . One of the aims of Martlesham in Bloom is to help improve the environmental quality and biodiversity of the Parish of Martlesham and the results of this survey will also help with these aims . Martlesham Common is the area of land between the A12 , Mill Heath , Felixstowe Road and Tesco and is
worth paying for . Many independent mortgage brokers will offer a free initial consultation , not charging a fee until the application stage .
What Next ?
Contact Terry Weller at Lifetime Financial Solutions , Tel 01728 833 168 or email terry @ lifetimefinancialsolutions . co . uk Lifetime Financial Solutions offer Independent Financial Advice .
designated as a County Wildlife Site . It is well used by many residents for walking , dog walking or to simply to get from one part of Martlesham to another and we would like to encourage anybody to help with this survey . If you would like any further details or would like to help with Martlesham in Bloom activities please contact us by email martleshaminbloom @ gmail . com or J Maureen Burrows ( Secretary ) on 01473 625196 . Our 20th Annual General Meeting is on Tuesday 18th April 2017 at 7.30 pm at the Parish Room , Felixstowe Road IP12 4PB . Hear about our achievements so far and our plans for the coming year . This will also be our formal ‘ launch ’ of the Martlesham Common Wildlife Survey .
8 THE FLYER | APRIL 2017
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