Fiona Scott Media Consultanccy

Independent adviser Tom Brennan, who is a director of TED Mortgages, is urging homeowners not to panic and jump the gun about the recent rise in the base rate of interest - just do some research about whether or not their mortgage is the best for their circumstances.

In December the Bank of England raised interest rates from 0.1 to 0.25 per cent - a rise of 0.15 per cent. It was the first such rise in three years. Since then there has been talk of further rises.

Tom Brennan, who runs TED Mortgages from Swindon, Wiltshire and the Cotswolds, said: "This is still the second lowest base rate we've ever had. With Omicron, the lingering possibility of another lockdown and inflation so high, bumping the base rate up further will only cause more unnecessary financial strains for households.

"A knee-jerk reaction for the sake of base rate increasing 0.15 per cent isn't necessarily the right thing to do. We only have to go back to March 2020 when the base rate was 0.75 per cent and the rates available by mortgage lenders then wasn't too dissimilar to what's available now."

His business partner Chris Blackwell agrees and suggests that those homeowners who are on a standard variable rate should review their mortgage anyway to ensure they have the best deal. This can be done without moving house.

"Anyone on a standard variable rate should be reviewing this and seeking professional advice rather than panicking and fixing a deal that might not be right," he said.

According to TED Mortgages, which operates mainly in Swindon, Wiltshire and the Cotswolds, there are continuing trends which have come about during the pandemic: 

  • People moving up the ladder for more space, either for more indoor space to create an office, or outdoor space to create an office in their garden.
  • People making home improvements.
  • First-time buyers taking the plunge as many banks are now offering 95 per cent mortgages.
  • Moving closer to their family - people who moved to cities or big towns for work are now moving back because they can work flexibly.

Tom said: "We are expecting that during 2022 the property market will remain incredibly active. The desire to move is as high as it has ever been and the housing price levels are expected to either maintain or slightly increase according to leading high street banks.

"We are expecting people to make use of the incredibly low interest rates that are available and utilise them to finance their aspirations, be it moving home, saving money or enhancing properties they already own.

"We're also hoping to see more support for first time buyers with improved affordability assessments and bespoke products from lenders helping first time buyers to have a better chance of getting on the ladder."

TED Mortgages is an independent, fee-free, certified mortgage broker that will work with its customers with a 'whole of market' approach tailored to each person's circumstances in order to help its customers understand all their mortgage and protection options.

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