Martin Lewis issues a ‘ticking time bomb’ warning to homeowners

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Martin Lewis has issued a warning to homeowners asking them to act fast as mortgage rates rocket.

He quickly described the rates as a “ticking time bomb”, while urging anyone coming to their end to “prepare in advance”.

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Martin Lewis issues ‘ticking time bomb’ warning to homeownerscredits: ITV

It comes when the price of everything is rising, between a the cost of living Problem.

energy bill Last month alone increased by 54%, and more eye-watering costs are expected to hit Later in the year.

Meanwhile taxes have gone up and prices on supermarket shelves have gone up. Inflation at its highest level in years.

Martin Martin Lewis took to the telly again last night to address consumer concerns amid the crisis while hosting Money Show Live.

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But homeowners were interested to know how rising inflation and more would affect their property ventures.

In the show, he was asked what should be done to heal himself again? mortgage In the midst of rising costs, strike a deal when your current fixed term ends.

Money Mogul explained that six months ago, you could get mortgage deals for less than 1%.

But the cheapest fix is ​​now double that, at 2.1%, he revealed.

Inflation figures hit a 40-year high when they hit 9% in March, adding to pressure on already struggling families and their finances.

And also helps in increasing the mortgage rates in a short span of time.

bank of england raised interest base At its 13-year high of 1%, after warnings that inflation could even reach 10% within months.

This is a move that creates borrowing costs, which include Loan, Credit Card And mortgage repayment more expensive.

If you have a fixed rate mortgage deal, you won’t be particularly affected by the increase in rates on repayment.

But you may experience a “rate shock” the next time you want to re-pledge and find that cheap deals are no longer in the market.

This was Martin’s biggest concern as he feared how homes would be accepted for affordable testing.

“An affordability check checks ‘do you have room to pay this mortgage’,” Martin explained.

“Now we are clearly in the midst of a cost of living crisis. So everyone has less space than before because other costs have gone up.”

Martin said: “If things get more expensive, you may want to pay a booking fee to lock in a cheaper mortgage.

“If it doesn’t you can find somewhere cheaper, so it’s like an insurance policy, so you lose a few hundred quid just because you’re locked in a cheap mortgage.”

Will Rind, Head of Mortgage Advice habitsaid: “With four rate hikes already in less than six months we expect UK homeowners with existing mortgages to see very different rates on mortgages next time around.

“We are urging all mortgage holders with six months to speak with a free whole market mortgage broker to explore the options available to them by the end of their fixed rate so they can plan ahead during these volatile times. to start making.”

Mortgage experts also explained that the next time a person enters a deal, he may end up paying more for it over time.

Someone opting for a two-year fix could end up reselling up to 10 times the life of the average mortgage.

With fees to be paid each time, this can be expensive – up to around £10,000 in arrangement fees alone, according to experts.

Will From Habito said, “Homeowners can do better to locate longer-term fixes of 10+ years or more to better protect themselves against rising interest rates and uncertainty over the duration of their mortgages.” Huh.”

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