The i - How you can protect your money ahead of more inflation rises
Inflation has increased this week, and most economists expect it to continue climbing upwards throughout the rest of the year and at the start of 2025.
Brokers say that to protect yourself from future rises, if you’re coming up to the final few months of your mortgage deal, it may be worth trying to lock in a new rate, in case of future rate increases. You can then switch to a cheaper deal if rates do come down.
Aaron Strutt of Trinity Financial said: “If your mortgage is due for renewal soon, find out the rates your lender is offering you to stay and consider locking into one. It is worth double-checking that you can switch or change the rate without paying a fee if mortgages come down and you spot a better deal. The lenders do have different rules.”
He said that although rates had gone up a little recently, some of the cheapest rates still offered “reasonable value” and that there was still a chance rates could fall next year.
“Many lenders are still expecting the Bank of England base rate to come down quite significantly next year, and if it does, fixed rates will probably be cheaper,” he added.