Mortgages: The 'absolutely vital' step needed to secure 'the lowest rate possible'


This expectation is feeding through to mortgage deals as the average two year fixed deals are at their highest rate since 2008. On his YouTube channel, financial planner James Shack suggested how people can “survive the mortgage crisis” and secure the lowest deals after their fixed deal ends.

This time last year, people could get a two year fixed deal 75 percent LTV at 1.3 percent. Six months ago this was up to 2.3 percent.

However currently, the average rate for this deal is over six percent – the highest rate since 2008.

Experts believe interest rates will rise further into 2023.

Those with fixed deals about to end need to start preparing themselves for a more expensive rate, Mr Shack stated.

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He explained that there are practical steps that people can take now to prepare themselves for the future.

The first thing people need to establish is what higher interest rates are going to mean for your monthly cash flows.

He said: “The prospects of paying 1.5 percent to six percent sounds terrible but you need to understand how much is this is going to change your monthly payments so you can get infront of it.”

He suggested people use a mortgage calculator to know how much more people will pay once their rate goes up.


“The beauty of this is that you can sit on this new fix and change if you find something.

“If you remortgage with your existing lender, they lock you into that new rate straight away.

“If you want to give yourself the best possible chance of getting the lowest rate available, it is vital to follow this strategy and add any product fees to the mortgage so you don’t have to pay anything upfront.”

Mr Shack warned that people should not apply for too many different mortgage deals at the same time as they do a hard credit check each time which could negatively affect one’s credit score.

He suggested that when applying for new mortgage deals, people should use a mortgage broker as they can help people find the best deals available.

They can also help people work out any early repayment fees and how much they can afford to pay each month.

He said: “Many mortgage brokers don’t charge customers directly, instead they earn their fees from their lender.

“But if you don’t go ahead with the mortgage then obviously that broker won’t get paid and if it’s obvious that the application is speculative, they may charge an upfront fee of £500.

“But this £500 can give you the peace of mind that you need over that next six months and perhaps save you tens of thousands of pounds well it’s probably worth it.”

More videos are available to watch on the James Shack youtube channel.


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