Martin Lewis has urged homeowners to check they are on the best mortgage deal ahead of a possible spike in interest rates.
On the Martin Lewis Money Show he warned Bank of England interest rates could rise from 0.1 per cent to 0.5 per cent in the coming months.
He has now warned anyone with a mortgage to check to see if they can get a fixed interest rate below one per cent before any knock-on to mortgages.
Speaking on the show, he said: Is the door about to shut on uber cheap mortgages? On Sunday the Bank of England’s Governor said it will have to act over inflation.
“Everyone with a mortgage you need to check now if you are on the best deal before it is too late.
“There is a possibility that we will look back and people will say ‘if only I switched my mortgage back in October.”
Martin said there are around 50 switchable deals at the moment that will see lenders keeping their interest rates below one per cent.
And he revealed his top tips for preparing to remortgage your home in a bid to avoid any interest rate rise that could come in the following months.
These included gathering all of the information about your current mortgage, including your loan to value ratio - the value of your current home vs the amount you owe - as well as your current rates.
The popular financial expert said you should then check to see if there are better rates with your existing lender before looking around for cheaper rates on comparison websites.
He added: “It’s not all about rates. It’s about fees as well.
“You should then use a mortgage calculator to compare your current deal.”
Martin said lenders will then do credit checks, meaning a poor credit record could stop you getting some of the best deals
He says lenders then do an affordability stress check, looking at your income compared to any outcome.
He added: “It’s not just if you could afford a mortgage. But if you could afford a mortgage if rates go up by say three per cent.”
Martin also suggested considering a mortgage broker as they will have access to information the public won’t.
Any announcement on interest rates would be expected in the coming weeks.
The Martin Lewis Money Show airs on Thursday at 8.30pm on ITV One.
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