1.8 million UK households issued warning over 'mortgage review'

Virgin Money hiked the cost of several of its fixed-rate mortgages this week, while Santander warned it may need to “nudge up” prices in the short-term.
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A mortgage warning has been issued for 1.8million borrowers as rates creep up and market turmoil continues. Virgin Money hiked the cost of several of its fixed-rate mortgages this week, while Santander warned it may need to “nudge up” prices in the short-term.

More than 1.8million borrowers with fixed-rate deals need to remortgage this year, according to trade body UK Finance. David Hollingworth, director at L&C Mortgages, said: “It’s important to review your rate in good time so that you have time to arrange something and can switch smoothly.

“Taking advice will help you keep track of the best overall value, factoring in not only the rate but also the fees that can mount up.” Andrew Montlake, of mortgage broker Coreco, said a tracker can be a “smart choice”. He added: “They are good for those who believe we’re at or near the peak of interest rates and want to build in some flexibility."

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And Nicholas Mendes, mortgage technical manager at John Charcol, said more lenders may increase their prices. Mr Montlake went on, adding: “If you’ve got a little bit of breathing room in your budget — and you want to take a punt on rates easing — then trackers can work.

"If not, then you may prefer the stability of a fixed deal.” Mr Montlake spoke out to the Sun newspaper and said he currently recommends: “Start by sorting out your budget and getting a good handle on what you can afford.

“Speak to a professional broker who can look at the best deals across the whole market, including schemes or low-deposit mortgages.” Frances Haque, chief economist at Santander UK, said: “This month, we’re already seeing swap rates edge up as they respond to volatility in the bond market, caused by an uncertain economic outlook for 2025 both at home and abroad.

“As such, lenders may well – in the short-term – nudge up pricing to reflect the higher swaps.”