AS THE Bank of England's base rate increase has led to fixed-rate mortgage deals hitting levels unseen since 2008, causing significant increases in monthly payments for homeowners coming off these deals, a mortgage expert from Romsey has been giving her advice on how to cope with the situation.
Rita Kohli, managing director of The Mortgage Stop, has been at the forefront of mortgage advice in Romsey for years.
With her extensive experience and understanding of the market, she's been guiding local homeowners through the current financial storm.
"We've seen clients' monthly payments increase by hundreds of pounds," said Rita.
"One of our clients, recently featured on BBC Breakfast, is a prime example. Thankfully, we were able to help her reduce the impact."
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So, what can homeowners do?
Rita advises that understanding your current mortgage is the first step.
She said: "It's not just about knowing your monthly payment, but understanding the details of your mortgage agreement. Timing is also crucial. The optimal time to start preparing to switch your mortgage is around seven months before your current deal ends."
For those facing increased monthly payments, shopping around for a better deal can be beneficial.
"There are many lenders out there, and you might find a better deal by switching," she said.
Switching your mortgage can be a viable solution, but it's not the only step you can take.
Rita said: "Other options might include overpaying your mortgage while on your lower rate to reduce the overall term or considering a different type of mortgage. However, every situation is unique, and what works for one person might not work for another. That's why talking to a professional adviser like us at The Mortgage Stop is key."
The goal is not just to navigate these challenging times, but to come out the other side in a stronger financial position.
She said: "With the right advice and a proactive approach, that goal is achievable."
While the prospect of coming off a fixed-rate deal in the current climate can be daunting, there are options available, she said.
Rita added: "By staying informed, seeking professional advice, and being proactive, you can confidently manage the process of switching your mortgage."
For more information, please contact The Mortgage Stop on 01794 379379.
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