Mortgage advice for the Metro

"Mortgages are making the headlines due to the possibility of inflation reaching 4%, which was again reiterated in this week's Budget. If the Bank of England decides that it needs to increase interest rates in order to curb rising inflation, it could mean the end of cheaper mortgage borrowing resulting in higher outgoings for households that are already feeling the squeeze. "Taking advantage of a fixed rate now is arguably the best way to get ahead and make sure you are protected from any future interest rate rises. Some lenders will allow you to secure a new rate six months before your current deal expires so it's best to start looking now and not leave it too late."

"Interest rates are likely to soon be on the rise, which means mortgage payments will be going up for anyone who is not on a fixed rate mortgage. If you have the option to apply for a mortgage sooner rather than later, you will likely save money by doing so, you can apply for a remortgage rate up to 6 months before your deal actually expires."

"Although there hasn't been much movement with lenders since the budget was announced, it is inevitable that interest rates will increase in the future. If you are in the right situation, it is worth locking in a great deal while you can. This is even more important for those in London where the average mortgage loan is higher."

Whilst nothing in the budget directly impacts on mortgages, there are plenty of things going on that indirectly effect them; inflation and the rising cost of living, the potential for interest rate rises from the Bank of England and increased taxation are the main ones. As lenders decide on how much they will lend to you based on their analysis of your affordability any increase in the cost of living will, at some point, impact on that calculation. So the more expensive the basics of life get, the less you can borrow as a mortgage for any given income. The potential for increases in interest rates also have a similar drag on the potential borrowing amounts for customer; if the lenders feel that rates are going to rise then they will want to provision for those future higher mortgage payments in their calculations. Again, this could reduce the amount of mortgage they are willing to offer. The best way to try and combat this, before you apply for a mortgage, is to look through your bank statements and work out what is a luxury you are willing to sacrifice on the alter of home ownership; that gym membership you took out in January, but haven't used since March for example, do you REALLY need Amazon Prime, Netflix, Spotify and Apple Music? The more cash you can free up that could potentially go to meeting those mortgage payments, the better (and by that I mean safer) you look to a lenders underwritter.