“Speculation on future base rate changes unsettles the market, and can be a frustrating time for those seeking to purchase or remortgage who may wish they had a crystal ball. Whilst borrowers may see a fixed rate deal as the most suitable answer, they should not automatically write off a discount option. Across the market discount deals are largely cheaper than their fixed rate counterparts, but without the certainty. However borrowers could be savvy in factoring in a potential rate rise; budgeting for a potential increase in payments in the future, whilst benefitting from the initial lower monthly repayment. Of course, no one can predict if, when, and by how much the Base Rate will rise.
All mortgage applicants should carefully consider their requirements and seek a mortgage deal, and a lender, best suiting their individual circumstances.
At Ipswich Building Society our personal approach to underwriting will particularly help those ‘mortgage misfits’ who are overlooked by larger high street lenders. Our focus will remain on offering choice while retaining a diligent approach to lending.”