Martin Lewis urges early action on expiring mortgage deals

Summarised from 2 outlets · Updated 20 Oct, 15:32 · Archive

Money expert Martin Lewis has advised homeowners to contact a mortgage broker six months before their fixed-rate deal expires.

Martin Lewis has advised homeowners to contact a mortgage broker six months before their fixed-rate mortgage deal expires. Speaking on ITV1's This Morning, the money expert explained that borrowers can typically book a fixed rate up to six months in advance, allowing them to lock in a rate before their existing deal ends without starting payments immediately. This timing matters because if rates fall in the meantime, borrowers may be able to switch to a cheaper deal; if rates rise, they are already protected.

The urgency of acting early reflects the current market conditions. According to Moneyfacts' latest figures, mortgage deals are lasting an average of just 13 days as lenders repeatedly change or withdraw offers amid market volatility. Average mortgage rates increased in October, with two-year fixed rates rising from 5.59% in September to 5.93%, and five-year rates climbing from 5.63% to 5.95%. Adam French, head of consumer finance at Moneyfacts, described brokers and borrowers as 'navigating the most challenging mortgage market in modern records'. The volatility has been linked to movements in swap rates, which influence the cost to lenders of funding fixed-rate mortgages.

How it is being reported

• Mortgage rate warning as deals disappear within days amid market volatilityAnyone approaching the end of a fixed-rate mortgage should consider their options early, experts have said.Worcester News · 20 Oct, 15:11
• Martin Lewis issues mortgage warning to anyone whose deal ends in the next yearMartin Lewis has told homeowners whose mortgage deal ends within a year to act six months in advance. Find out how booking a fixed rate early could help.Malvern Gazette · 20 Oct, 15:07

In this story: Martin Lewis · ITV1 · Bank of England · Moneyfacts

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