Topics: Home, News, Martin Lewis, Money
Martin Lewis has issued an important warning for mortgage owners, as the cost of living continues to soar.
Writing in a recent edition of his Money Saving Expert newsletter, the finance guru has urged homeowners to consider locking into a fixed rate.
He also warned that mortgage rates are predicted to increase, as the cheapest fixed deals are now double the rates reported in October last year.
In comparison to October 2021, when there were over 50 mortgage deals below one per cent, the cheapest rate now is 1.79 per cent.
This increase equates to an extra £800 a year on a mortgage costing £150,000. The Bank of England announced in March it will increase UK interest rates from 0.5 per cent to 0.75 per cent and Martin said that as a result of this increase, "things are likely to get worse".
He explained that while mortgage rates have increased, in a historical context the rates are still "cheap" and mortgage owners should take action sooner rather than later if they can.
Anyone who has a mortgage which has not been locked into a "decent rate" for the foreseeable future, should now check to see if there are any better deals out there, even if your deal ends in the next six months.
The cost of living has surged in the last few months, with Brits struggling to pay their energy bills as well as steep increases in food and petrol prices.
Inflation reached 6.2 per cent in February, the highest level in three decades, according to figures from the Office for National Statistics.
Energy bills are set to rocket in price, with Ofgem's price cap rising from £1,277 to £1,971 next month. This means the average household bill could be increasing by around £693 per year.
Martin has issued a series of updates to help people meet the costly demands of living, including tips for those who pay their energy bills via direct debit. You can read his advice here.