2BR News

Contact the News Team:
Tel: 01254 350360

MORTGAGES: What to expect in 2018

kmfs

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.

: : Name: Email: Phone number: Message: Images:
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 article
KM Financial Solutions LLP

MONEY: Planning for the future in 2018

Helping you along your Financial Journey

Older article

MONEY: Planning for the future in 2018

Promoted: Helping you along your Financial Journey

Top articles

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

Doping case launched against Russian athlete Alexander Krushelnitsky at Winter Olympics

Sport: The Court of Arbitration for Sport's anti-doping division has begun proceedings against Russian mixed curler Alexander Krushelnitsky.

BAFTA Awards go black for Time's Up and #MeToo

Showbiz: On the night Three Billboards Outside Ebbing, Missouri cleaned up at the 71st British Academy Film Awards, the red carpet played host to a parade of stars wearing black.

Walker dies after falling 800ft from Snowdon summit

National News: A walker has died after falling more than 800ft from close to the summit of Mount Snowdon in Wales.

Winter Olympics: Russian curler Alexander Krushelnitsky in doping probe

World News: Russian curling medallist Alexander Krushelnitsky has been charged with a doping offence at the Winter Olympics in Pyeongchang.

Employers 'in dark ages' on pregnant women's rights, says equalities watchdog

Business News: Employers are "living in the dark ages" on pregnant women's rights with six in ten (59%) believing job applicants should have to disclose whether they are pregnant, new figures show.

The confusion surrounding the John Lewis Christmas advert

Local News: Trending on Facebook this morning is the John Lewis Christmas advert....but not all is as it seems.

MONEY: Planning for the future in 2018

Promoted: 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.

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

This week's top entertainment videos!

Local News: The videos that had you talking

Losing sleep to care for a family member

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

Most read

MONEY: Planning for the future in 2018

Promoted: Helping you along your Financial Journey

@2BR