Imagine paying £20k/$20k more interest in 2023 than you did in 2022!! This can happen if you haven’t been paying attention or don’t take immediate action.
Many mortgage rates have gone up 3% over the past 12 months. So with a £700,000 mortgage, on a £1 million house, you will pay £21,000 more interest next year. Your rates may have gone from 2% to 5% or £14,000 per annum to £35,000 per annum.
Now if you fixed that for five years, that would be £105,000 less in your pocket and more in your bank’s pocket. Yikes! I bet you could have had nice plans for that kind of money.
You can’t do anything about the rate changes up until now. However, if rates go up 3% more by summer next year, but you lock in now, you could save yourself a further £21,000 per year and £105,0000 over five years. You know it makes sense!!
Get your pen and paper out. Call your bank or broker and run the numbers. Get a fixed rate if it makes sense. This time next year you’ll be so glad you did. Do it now!