The Bank of England today opted to raise the base interest rate to 1.75%; its sixth consecutive increase since December. Future rises are now also a matter of “when” not “if” - the BoE’s own analysis suggests the rate will rise to 2% this year before hitting 2.75% in 2023.

This fast-changing environment is a clear reminder that it’s never too soon to review your current mortgage options. Here are three reasons why:

• Rates are changing rapidly

Lenders are watching the market closely and as such are quick to put their rates up. Market sentiment and swap rates factor into their decision making, with lenders giving borrowers and brokers little notice about repricing. It’s not uncommon for rates to change daily, with some lenders repricing as regularly as twice a week. Average repricing is somewhere between 0.1%-0.4%.

That means that borrowers who opt to wait a few weeks before locking in a mortgage offer can find themselves facing hundreds of pounds more in interest payments each month.

• How much you can borrow may have changed

We’re seeing two significant impacts on borrowers at the moment. Firstly, some homeowners who are nearing the end of their terms are facing a shock when they come to refinance, because they are unable to borrow as much as they hoped.

Secondly, those who are looking to buy are realising once obtainable properties are now out of reach. The question for them is now not “how much can I borrow?” but “how much can I afford to borrow?”. This is a subtle but very important shift in borrower behaviour that is driving people to re-evaluate the price at which they can buy.

• Market activity is intensifying

The mortgage market is very busy as people race to find fixed rate deals to ride out this period of volatility. This surge in demand means, now more than ever, that borrowers will benefit from an early conversation with a broker, who will be able to assess the best options available to them. It’s vital to remember that being proactive and remaining informed about the market will help lessen the impact of any changes ahead.

If you are seeking a new mortgage, planning to remortgage, or would like to have an informal chat about your finances, please don’t hesitate to get in touch with us. You can request a mortgage consultation with a member of our team here.