If you have a fixed rate mortgage
The amount you have to pay won't change until the end of the fixed term.
If you’ve got six months or less left on your fixed rate term and you’re worried about rising interest rates, there are things you can do.
Most lenders are signed up to something called the ‘Mortgage Charter’. If your lender is signed up to the charter and you’re up to date with your mortgage payments, you can ask them to give you a quote for a new fixed term deal based on the current interest rate.
The quote is valid for six months. If interest rates go up you can still use it, but if they go down you can ask for a new quote.
If you have a tracker mortgage
The amount you have to pay follows the Bank of England base rate. When the base rate goes up or down, so will your monthly mortgage repayment rate. This means your monthly mortgage repayments could be a different amount each month.
If you have a variable mortgage
Your lender can set your interest rate - it might depend on the Bank of England base rate.
Usually, these rates go up when the base rate goes up but don't go down when the base rate goes down.
You can use a mortgage calculator to check how a change in interest rates will affect what you owe and pay. You can use the mortgage calculator on the MoneyHelper website.
Before you start, you'll need to know:
- How much you owe on your mortgage.
- How many years you have left on your mortgage.
- The new interest rate for your mortgage.
To use the calculator, follow these steps:
Enter the amount you owe on your mortgage - use the box called 'Price of the property is'.
Don't put anything into the 'Deposit available is' box .
On the second screen make sure you put the total number of years you have left on your mortgage - use the box called ‘Mortgage term is’.
Put the new interest rate you want to check - use the box called ‘Interest rate is’.
You can contact Citizens Advice North Herts via northhertscab.org.uk and Citizens Advice Stevenage via stevenagecab.org.uk.
The Herts wide adviceline number is 0800 144 88 48.
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