Homeowners in for an unexpected shock?

Are homeowners in for an unexpected shock?

There are fears that homeowners on a tracker mortgage could see their repayments rise despite the Bank of England base rate remaining at its historically low level of 0.5%.

How can this happen?

A number of West Bromwich Building Society borrowers have already experienced unexpected hikes after the lender confirmed plans to increase its Buy to Let tracker by a whopping 2% from the beginning of December.

Nobody knows...

West Brom are the second lender to increase rates. The Bank of Ireland upped its rates earlier in the year affecting around 13,500 residential and commercial borrowers. This prompted concerns that this pattern of behaviour could be the start of a 'worrying trend'. 

A simple solution!

Two year fixed rates reached record lows this summer and five year fixes aren't far behind. However with this threat of standard variable rate hikes, these low rates are unlikely to be around for long, so how can you avoid an increase?

You can avoid the risk of sudden hikes by acting now and beating what could be an even bigger rush than the Debenhams Winter Spectacular! If you have a standard variable rate mortgage, contact us now for advice on whether you should remortgage on to a fixed rate, and what the costs would be.