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Martin Lewis interest warning for anyone with a mortgage or loan – Leicestershire Live

A product transfer would help people get locked into a lower rate
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Anyone who has a loan or mortgage is being urged to check in on the cheapest deals as interest rates soar 10-fold, Martin Lewis has warned. The Money Saving Expert founder warned it could get even worse as the cost of living crisis deepens.
He issued practical things you can do as interest rates skyrocket. Locking in new deals with banks would help keep monthly mortgage repayments low.
Martin said: "Since we were last on the show (the previous week) interest rates have gone up. The UK base rate is now at 1 per cent.
"If you told someone 20 years that (1 per cent) they would have thought it was incredibly low but let's just put it in context: six months ago it was 0.1% so it's gone up 10-fold in that time.
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"And the direction of travel is what matters. Even at the last meeting, there were members of the banks' committee who voted for it to rise even faster."
Explaining how it impacts people in the UK, Martin said: "That means everyone who has got an outstanding mortgage, debt on a credit card, a loan, or an overdraft, you need to be checking now that your deal is as good as can be.
"Rates are likely to rise and rise rapidly over the year and you need to position yourself to protect yourself from it."
Martin claimed there were more than 50 fixed-rate mortgage deals with interest rates below 1% back in October. Fast forward to May 2022 and the cheapest fixed rate is 2.1%.
He explained: "That means for someone with a £200,000 mortgage over 30 years, the cheapest rate today would cost £120 a month more (£1,400 a year more) than the cheapest rate in October. Further rate rises are predicted."
Martin said most standard rates were 5 per cent so it was worth trying to get in a fixed-rate deal before interest rates soared even higher. He then gave four steps to finding the cheapest mortgage rate:
Martin suggested using a fee-free mortgage broker who gets their commission from the bank or, if you do pay for the broker yourself, only pay once you've been accepted for the mortgage. He said it's harder to get approved for affordability or credit reasons thanks to the cost of living increasing so much.
Also on the show, a man confessed he had got a kitchen half price by going into a back room and making himself cry, nabbing the hefty discount by telling the designers he didn't have enough money to pay and was "sorry for wasting your time". Martin said the tactic was "morally dubious".

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