MARTIN Lewis has issued a warning to homeowners telling them to act quickly as mortgage rates soar.
He described the rapid rise in rates as a “ticking time bomb” while urging anyone nearing the end of theirs to “prepare ahead”.
It comes as the cost of everything rises, in the midst of a cost of living crisis.
Energy bills soared 54% last month, with higher costs set to hit later in the year.
Meanwhile, taxes have risen and prices on supermarket shelves have soared as inflation hits its highest level in YEARS.
Martin took to TV again last night to allay consumer concerns amid the crisis, as he hosted the Martin Lewis Money Show Live.
But homeowners were interested to know how soaring inflation and more would affect their real estate plans.
On the show, he was asked what to do to fix your mortgage contract when your current fixed term expires, amid rising costs.
The money mogul explained that six months ago you could get mortgages below 1%.
But the cheapest patches are now double that, at 2.1%, he revealed.
Inflation figures hit their highest level in 40 years when they hit 9% in March, adding pressure on already struggling households and their finances.
And help drive up mortgage rates in no time.
The Bank of England raised the interest base to its own 13-year high of 1%, after warnings that inflation could also hit 10% within months.
It’s a decision that makes the cost of borrowing, including loans, credit cards, and mortgage repayments, more expensive.
If you have a fixed rate mortgage, you will not be affected by rate increases on repayments in particular.
But you could experience a “rate shock” the next time you come in to mortgage and find that cheaper deals are no longer on the market.
This was exactly Martin’s biggest concern, as he worried about how households would be accepted for accessibility checks.
“An affordability check looks at ‘do you have room to pay that mortgage,'” Martin explained.
“Now we are clearly in the middle of a cost of living crisis. So everyone has less room than before because other costs have gone up.”
Martin said: “You might even want to pay a booking fee to lock in a cheap mortgage in case things get more expensive.
“If you don’t, you can get a cheaper one elsewhere, so it’s like an insurance policy, so you lose a few hundred pounds after locking in a cheap mortgage.”
Will Rhind, Head of Mortgage Advice at habitatsaid: “With four rate hikes already rolled out in less than six months, we expect UK homeowners with an existing mortgage to see very different rates on their next re-mortgage.
“We urge all mortgage holders with six months to go through the end of their fixed rate to speak with a mortgage broker across the open market to explore the options available to them now so that ‘they can start planning ahead in these unstable times.”
Mortgage experts have also explained that anyone opting for a shorter deal the next time they make a deal could end up paying more over time.
Someone who opts for a two-year solution could end up remortgaging up to 10 times over the life of the average mortgage.
With fees to be paid each time, it could get expensive – up to around £10,000 in arrangement fees alone, experts say.
“Homeowners may be better off exploring a longer-term solution of more than 10 years or more to protect against further interest rate hikes and uncertainty over the life of their mortgage,” said Will deHabito.
Martin Lewis has also revealed whether you should pay your energy bill now after the latest price cap prediction of £2,800.
And the money guru has shared how to get FREE food from the supermarket as prices are also skyrocketing.
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