Martin Lewis has issue urgent advice to everybody with a mortgage, warning of a "ticking time bomb".
The Martin Lewis Money Show Live returned to screens earlier this week for a summer special, and covered subjects such as holidays and the impending energy price cap rise in October.
However, another key topic the financial guru covered was mortgages.
READ MORE — Edinburgh Platinum Jubilee celebrations announced for Princes Street Gardens
One viewer asked the MoneySavingExpert.com founder a question about his fixed rate mortgage that is soon coming to an end.
He said: “What should I be looking out for going forward? Should I consider a two-year or five-year deal? Do you think interest rates are going to keep going up? Can I do anything now?”
In response, Martin said: “Yes, I do. I don’t normally make predictions on interest rates but in the last meeting of the Bank of England the vote was six voted for it to go up 0.25% and three voted for it to go up 0.5%.
“I think there are certainly more rate rises to come - nothing is certain - I think we might be up another percent by the end of the year.”
Lewis proceeded to explain how at the end of 2021 there were an abundance of mortgage deals under 1% — but the cheapest fixed deals are now more than twice this value.
As reported by the Daily Record, he added that he currently has "real concerns" regarding mortgages.
Speaking to viewers at home, Lewis stated: "You have to remember that to get a mortgage, to be accepted, you have to pass a credit check and an affordability check and an affordability check examines 'have you got room to pay this mortgage'.
"Now, we're clearly in the midst of a cost of living crisis. So everybody has less room than they did before because other costs have gone up.
“So my great fear is we're seeing interest rates going up and fewer people are going to be accepted when they apply for a cheap mortgage because more are going to fail affordability checks.
"And that leaves us with a ticking time bomb because most people are on cheap fixes and they're expecting when they end they’ll be able to fix again at the same rate but the rate is likely to be a lot higher and they may not be able to get them and that is a real problem coming forward.”
He continued: “So if you're coming to the end of your rate, you need to prepare in advance. You might even want to pay a booking fee to lock in a cheap mortgage in case things get more expensive and if it doesn't you can get a cheaper one elsewhere, so it's like an insurance policy so you lose a few hundred quid but have locked in a cheap mortgage.
“Speak to a mortgage broker for help.
"As for a two or five-year deal? Well, if things are going up and you want certainty and you can get a cheap five-year deal, a five-year deal gives you certainty.”
The financial expert added: “I can't promise it will have been cheapest when you look back in hindsight, but if you want peace of mind, in an uncertain world - and boy are we in an uncertain world - then fix and fix longer."
