2BR News

Contact the News Team:
Tel: 01254 350360

MORTGAGES: What to expect in 2018

kmfs

Published by at 9:04pm 31st January 2018 (Updated 12:09pm 1st February 2018)

KM Financial Solutions banner

What’s going to happen to house prices and your mortgage over the next 12 months?

We’ve teamed up with KM Financial Solutions to give you some useful tips.

Here is their advice:

Annual UK house price growth, with some regional variations, is expected to be around 1% in 2018 and 3-4% over the long term according to Nationwide*.

The Bank of England Rate increased to 0.5% in November 2017. It was the first interest rate rise since July 2007. Although, there seems to be no panic, and the Bank of England regularly says that any rise would be measured, and increase slowly over time. However we do expect rates to increase over the coming years**.

Of course, you may be perfectly happy with your current situation and the deal that you’re on. However, for others, events such as a rate rise and further aspects of Brexit, rising inflation and overall economic conditions in the UK may be considered a wake-up call, which prompts the need to have a conversation with us.

If you are approaching the end of your mortgage deal period, and what to have a look through the current deals on offer.

You may simply want to change your existing mortgage arrangement, possibly to raise further funds. A house move may be on the cards, and you might be considering larger mortgage or you may be one of the 3-4 million*** currently on Standard Variable Rate. These are all good reasons and would be wise to talk to us.

A mortgage is probably the biggest debt you’ll ever take on, but by employing these little tricks you can pay it off ahead of schedule.

Most mortgages allows you to ‘Overpay’ by certain amount each year, without incurring any charge. Generally that’s about 10% of your mortgage balance. If you pay more than that, then you may incur an early repayment charge. If you can afford it, it’s well worth paying a little extra each month on your mortgage repayment as it can dramatically cut how long it takes you to pay off the mortgage.

There is another way to clear your mortgage early, without actually having to pay any extra each month, so long as you have a decent savings pot. The trick is to make use of an offset mortgage. These are fairly common. The idea is that you place your savings in a savings account which is linked to your mortgage account. Your savings are then ‘offset’ against your mortgage debt, reducing the amount on which you have to pay interest. Just bear in mind, you won’t earn any interest on your savings pot with an offset account, though with savings accounts so poor at the moment, you probably aren't missing out on much.

We have access to the whole of Market and may save you time and money to have a chat with us.

Warning—your home may be repossessed if you don’t keep up with repayment on your mortgage.

*source-Nationwide December 2017

**source-Bank of England, November 2017

***source-which, March 2017

Contact Us

If you would like to submit a query or provide more information on this story please get in touch below.

Please wait...
  • Up to 3 JPG or PNG images, 2MB max size
  • We will always endeavour to credit you when we publish your pictures.
  • By uploading you are agreeing to this non-exclusive reuse, royalty-free, across all 2BR platforms, which extends to our partner broadcasters.
  • You retain copyright to all images.
  • If you would like to send us a video, please upload to YouTube or similar and paste the video URL into the message above.

Share This Story

Submit this page to reddit
Suggested articles
weather warning 8th feb 2019

Winds of up to 60mph expected

Storm Erik is expected to cause problems after midnight

Ambulances at Preston

Ambulance service expect to be busy from lunchtime

New Year's Eve is their busiest night of the year

Most read
girls looking to be adopted

Lancashire sisters looking for a forever home

The search is on to find adoptive parents for the siblings

Botany bay redevelopment

Final farewell to Chorley's Botany Bay

It's going to be turning into an outlet village

Suggested Articles

Winds of up to 60mph expected

Local News: Storm Erik is expected to cause problems after midnight

Ambulance service expect to be busy from lunchtime

Local News: New Year's Eve is their busiest night of the year

Man has ear bitten in Preston attack

Local News: It happened in the early hours of New Years Day

Burnley fire investigated

Local News: It broke out early this morning

Top Articles

RSPCA Preston branch reopening next month

Local News: It was closed in 2017 for sub-standard practices

Deaf man learns how to communicate in his 70s

Nepal: In the final episode of 2BR's special report from Nepal, we meet the older Deaf people who've only just learned to communicate.

Uganda Appeal: Re-visiting some of the people 2BR met

Local News: A month on, 2BR has a few updates for you

Lionel Messi seals Barcelona win over Sevilla with 50th career hat-trick

Sport: Lionel Messi scored the 50th hat-trick of his career as Barcelona twice came from behind to defeat Sevilla 4-2 in La Liga.

Revealed: What happens inside a celebrity freebie lounge

Showbiz: If you haven't heard of celebrity gifting lounges before, you're not alone.

Linda Razzell: Police search field after tip-off in possible link to woman's disappearance in 2002

National News: Police have put up a forensics tent in a Wiltshire field in a search that could be connected to the 2002 disappearance of mother-of-four Linda Razzell.

Gunfire and explosions at start of Nigeria's presidential election

World News: Nigeria's election began with gunfire and explosions as President Muhammadu Buhari seeks a second term.

Trade pact with Japan ruled out by Brexit deadline

Business News: The government has admitted it has run out of time to roll over existing trade pacts with Japan and Turkey in the event of a no-deal Brexit.

Slovak-speaking parrot found on airport runway reunited with owner

Strange News: A missing parrot has been reunited with its owner after recognising the Slovakian language it was taught.

MONEY: Planning for the future in 2018

Local News: Helping you along your Financial Journey

Near misses in drowning need to be talked about

Local News: They're the lucky ones - says Lancashire mum

LIVES IN LANCASHIRE: Tom Heaton

Local News: See how the keeper is saving more than just shots in Lancashire

HALF PRICE - Hollywood Star

Non-News: Get your half price voucher for Hollywood Star in Burnley now.

A sad end for this Motown legend

On This Day: We said goodbye to Florence Ballard

VIDEO Something Worth Fighting For

Local News: You've never seen a journalist do this...

Giant cyclist set to be around for the entire weekend

Local News: The giant artwork on Pendle Hill is in celebration of the Tour of Britain

Losing sleep to care for a family member

Local News: Challenges facing the UK's 700,000 young carers

Most Read

Lancashire sisters looking for a forever home

Local News: The search is on to find adoptive parents for the siblings

Final farewell to Chorley's Botany Bay

Local News: It's going to be turning into an outlet village

@2BR