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What rate rises mean for borrowers and how they can get the best mortgage rate

Journalist: Rachel Mortimer, The Times

ended 21. September 2022

Writing a guide on what the inevitable Bank Rate rise means for mortgage borrowers this week and would like your best tips on how borrowers can make sure they are getting the best deal as rates rise. We have already referenced getting a deal locked in six months in advance, so any other tips would be greatly appreciated. 

Thank you, Rachel  

7 responses from the Newspage community

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Rob Peters
Principal at Simple Fast Mortgage
Use a mortgage broker that has unrestricted access to mortgage lenders who can consider the small building societies and specialist lenders as well as high street names. If the property has an Energy Performance Certificate of A or B, then see if there is a green mortgage deal available. This often has a reduction in the interest rate or cash back. Check to see if it is worthwhile adding some extra cash to the deposit or remortgage. Mortgage interest rates are based on loan to value bandings (LTV). So borrowing 80% of the property value is likely to unlock a lower interest rate than borrowing 81%, for example. Tidy up your credit report to have a better chance of being accepted by the preferred and cheapest mortgage lenders. Check you are registered on the electoral roll at your current address. Make sure your address with banks and credit providers is accurate, that you are not financially associated to anyone you shouldn't be such as an ex-partner or flaytmate. Ensure that there is no incorrect adverse credit recorded on your report, and if there is contact the companies and credit referenmce agency to have it removed..
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Ashley Thomas
Director at Magni Finance
If your loan to value is close to the next band ie. 61% to 60%, check how much more deposit or overpayment you would need to make to get the next option. The rate may be lower.
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Sabrina Hall
Mortgage Adviser & Protection Adviser at Kind Financial Services
Whilst for most people getting locked in early is a priority I'd also advise my clients not to focus on rates alone. For some of my clients a variable rate is still the best option for them if they want flexibility in the future and for some fixing shorter term makes more sense depending on their future plans. Taking action quickly is important but don't panic and commit to a deal that might not suit your future needs. Speaking with an adviser is vital so that they can take all your circumstances into account and not just the rising rates.
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Graham Cox
Director at Bridging Hub
Decreasing your mortgage loan-to-value can make an enormous difference. If you're just above the next ltv band and you can afford to do it, make an overpayment to bring your ltv down could really help. Another option is to add to your equity with a gifted deposit from a family member when you come to remortgage.
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Mark Robinson
Managing Director at Albion Forest Mortgages
Going forward people should definitely be using a mortgage broker to find the best deal for them. It will be essential for the majority of people to ensure they are applying to the right lender for affordability and best deal. The Equity release market will be equally important to speak to a specialist, however that has always been the case!
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Robert Payne
Director at Langley House Mortgages
It is worth being aware that some lenders will allow you to change the property you are buying without changing the rate you have initially applied for. This could be an extremely valuable piece of information as we see more and more chains breakdown and buyers have to reapply on current rates, which at the moment are continually increasing.
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Jamie Lennox
Director at Dimora Mortgages
Speed matters with how fast mortgage deals are being withdrawn, customers really can't afford to wait days let alone weeks for an appointment with a bank or broker as the rate you've seen online will have long gone in that time. Therefore it is important for customers to use a firm that can work fast. separately, customers can't afford the time to dwell on a proposed deal. With most lenders, a rate can't be secured until the full application has been submitted. The decision to proceed needs to be on the same day to avoid the risk of the rate being withdrawn.