AN INDEPENDENT mortgage advisor based in Swindon is urging homeowners not to panic about the rise in the base rate of interest.

Last month, the Bank of England raised interest rates from 0.1 to 0.25 per cent (a rise of 0.15 per cent) which is the first such rise in three years - and there has been talk of further rises coming up.

TED Mortgages director Tom Brennan said: “This is still the second lowest base rate we've ever had. With Omicron, the lingering possibility of another lockdown and inflation so high, bumping the base rate up further will only cause more unnecessary financial strains for households.

“A knee-jerk reaction for the sake of base rate increasing 0.15 per cent isn't necessarily the right thing to do. We only have to go back to March 2020 when the base rate was 0.75 per cent and the rates available by mortgage lenders then weren't too dissimilar to what's available now.”

His business partner Chris Blackwell agreed and suggested that those home-owners who are on a standard variable rate should review their mortgage anyway to ensure they have the best deal, which can be done without moving house.

Mr Blackwell said: “Anyone on a standard variable rate should be reviewing this and seeking professional advice rather than panicking and fixing a deal that might not be right."

They have seen new trends happening during the pandemic, like more people making home improvements, first-time buyers taking the plunge because many banks now offer 95 per cent mortgages, flexible working allowing people who moved away from their hometowns for jobs to return there, or people moving up the property ladder to have more space to create an indoor or outdoor office.

Tom added: “We are expecting that during 2022 the property market will remain incredibly active. The desire to move is as high as it has ever been and the housing price levels are expected to either maintain or slightly increase according to leading high street banks.

“We are expecting people to make use of the incredibly low interest rates that are available and utilise them to finance their aspirations be it moving home, saving money or enhancing properties they already own.

“We’re hoping to see more support for first time buyers with improved affordability assessments and bespoke products from lenders helping first time buyers to have a better chance of getting on the ladder.”