Martin Lewis' MSE warns anyone with a mortgage and explains 'what you can do'

Martin Lewis' MSE warns anyone with a mortgage and explains 'what you can do'

by · Birmingham Live

Martin Lewis' Money Saving Expert has issued a warning to mortgage borrowers over rising rates. The group, founded by the BBC Sounds presenter and ITV regular, has issued a warning a week on from the Bank of England base rate cut.

MSE said: "Cuts to fixed-rate mortgages have come to a halt and many lenders are now hiking rates following the Budget last month – but will this trend continue?" It added: "In early October, two-year fixed-rate mortgages were as low as 3.84% and five-year fixes 3.68%.

"However, these have now increased to 4.11% and 4% respectively – even as the Bank of England cut the Base Rate from 5% to 4.75% last week." When pressed by MSE, Aaron Strutt, Trinity Financial, said: "Most sub-4% mortgage rates have been pulled now. While rates are going up at the moment, there is a fair chance they will come down again, especially if demand for mortgages slows."

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Ben Thompson, Mortgage Advice Bureau spoke out over whether you should fix and said: "I would always say try and avoid playing the markets when it comes to fixing a mortgage or not, and also with regard to length of any fixed rate. There is no visibility regarding rates plummeting at all currently, so if in any doubt, fix."

David Hollingworth, L&C Mortgages, added: "Forecasting and perception changes frequently but for now borrowers should grab a rate whilst they can, to avoid missing out if the deal is subsequently withdrawn."

Nicholas Mendes, John Charcol also spoke out when approached by the consumer group. Mr Mendes said: "Borrowers should act swiftly to lock in deals. Many lenders offer flexibility to switch to better deals if the market improves before completion, which can be a prudent approach in this environment."

A social media user said: "Not good news for me, I am looking to remortgage in the next few months .. Will definitely be using your remortgage guide to help the process."