Don’t Let Headlines Delay Your Mortgage Decision

If you’ve read the financial pages recently, you’ll have seen plenty of headlines about mortgage rates creeping upwards again.

It’s understandable that this makes homeowners nervous. When rates start moving, many people instinctively think the best approach is to wait and see what happens next.

In reality, that’s often the biggest mistake.

At Horne Dennison, we’ve seen countless clients spend weeks or even months waiting for the “perfect” rate, only to find the market has moved against them. The truth is that nobody, not even the lenders themselves, can predict exactly where mortgage rates will be in a few months’ time.

Rather than trying to guess what the market will do next, it’s usually far more productive to put yourself in the strongest possible position, whatever happens.

Mortgage rates don’t just move when the Bank of England changes its base rate.

Lenders also respond to inflation, financial markets and the cost of borrowing money themselves. That means rates can change several times within a matter of weeks.

We’ve seen lenders reduce rates, withdraw products and introduce new ones, sometimes all within the same month.

If professional economists struggle to predict exactly what will happen next, it’s unrealistic to expect homeowners to time the market perfectly.

One of the simplest pieces of advice we give clients is also one of the most valuable.

Don’t wait until your mortgage deal finishes before reviewing your options.

Many lenders allow you to secure your next mortgage up to six months before your current deal ends. In many cases, there is no fee simply for reserving that new mortgage offer.

That gives you several advantages.

Firstly, you have the reassurance of knowing your next mortgage is already arranged.

Secondly, if rates continue to rise, you’ve already secured a deal.

And if rates improve before your new mortgage completes, there’s often the opportunity to review the market and switch to a better product instead.

It’s a position that gives you both security and flexibility, without committing yourself unnecessarily.

While nobody can control interest rates, there are several things you can control.

Review your mortgage well before your current deal expires.

Check your credit report so there are no unexpected surprises.

Gather your paperwork early.

And most importantly, speak to a mortgage adviser before you’re under pressure to make a decision.
Having a plan means you’re making choices because they suit your circumstances, not because you’re running out of time.

It’s easy to become focused on whether rates might fall by another 0.1% or 0.2%.

Of course, every saving helps.

But choosing the right mortgage product, ensuring your monthly payments remain comfortable and having flexibility for your future plans will often have a much greater impact than trying to predict the next movement in the market.

A mortgage should support your life, not dictate it.

Markets will always move. There will always be another headline suggesting rates could rise, fall or stay exactly where they are.

Waiting for complete certainty usually means waiting forever.

If your current mortgage deal is due to end within the next six months, now is an excellent time to start the conversation.

At Horne Dennison, we take the time to understand your circumstances, explain your options clearly and help you secure a mortgage that’s right for you, not just today, but for the years ahead.

A simple review now could leave you in a much stronger position, whatever the market decides to do next.

Your home may be repossessed if you do not keep up repayments on your mortgage.