Habito comments on Martin Lewis: Mortgage Ticking Timebomb

Habito comments on Martin Lewis: Mortgage Ticking Timebomb, which warned homeowners to start fixing now to avoid potentially crippling increases to mortgage repayments.

Will Rhind, Head of Mortgage Advice at Habito, comments: 

“Last night, Martin Lewis spoke about a “mortgage ticking timebomb” on the Martin Lewis Money Show Live and voiced his concerns over rising interest rates and the changes in consumers’ affordability in the face of the ongoing cost-of-living crisis.

“With four rate rises already rolled out in under 6 months we expect that UK homeowners with an existing mortgage will see very different rates when they next remortgage. We’re urging all mortgage holders with 6 months to go until the end of their fixed rate to speak to a free whole of market mortgage broker to explore the options available to them now so that they can start planning ahead during these unsteady times. 

“Habito data shows that 5-year fixed rate deals are at an all time high and now make up for almost 60 per cent of mortgage submissions, whilst demand for 2-year fixed rate deals has dropped to 28%. Continuing the trend of fixing for longer, our data also shows that 10-year fixed rate deals have doubled since the start for the year. 

“Remortgagers should keep in mind that if they opt to fix for 2 years at a time, they might end up remortgaging up to 10 times over the life of the average mortgage. Most deals come with a £999 fee payable each time, meaning that this cycle of remortgaging could cost around £10,000 in arrangement fees alone. 

“Homeowners might do better to explore a longer-term fix of 10+ years or more to give themselves protection against further interest rate rises and uncertainty for the duration of their mortgage. With Habito One for example, the interest rate is guaranteed for longer, right up until you pay it off. There are no early repayment charges or exit fees, meaning homeowners have complete flexibility and freedom to leave at any time, switch deals, make unlimited overpayments, move home, or pay off their mortgage early without any penalties or hidden fees.” 

Kindly shared by Habito

Main article photo courtesy of Pixabay