Having barely shifted since last autumn, many analysts expect that interest rates may start edging down. What will that mean for mortgage borrowers and anyone looking to remortgage?
 
Time for a fall?
Most analysts agree that interest rates have peaked but there is less consensus on exactly when they will start to drop.
 
One forecast¹ has suggested that Bank Rate rates will remain at current levels until June this year, when a series of cuts will see Bank Rate gradually fall to 3% by the end of 2025. Other researchers are less optimistic. One² suggests that rates will only decrease to 4% by the end of next year.
 
Only one way
Despite these differences, nearly all forecasters think that interest rates will go down in the coming years. 
 
This should come as a relief to mortgage borrowers, many of whom have seen their mortgage payments skyrocket after the ultra-low rates of the past decade ended abruptly.
 
However, with rates unlikely to fall a large amount this year, some will still experience a shock if they need to remortgage in 2024.
 
Buckle up
The road ahead may remain bumpy, but we are here to help you through it! We'll begin looking and securing rates 6 months before your mortgage deal ends, so you can be confident when making a decision on your next mortgage.
 
Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay and early repayment charge to your existing lender if you remortgage.
 
1 Capital Economics, 2024
2 Berenberg Bank, 2024

Only 2 in 10 UK homeowners have income protection¹, even though it’s likely to be needed at some point in a person’s life. Take a 35-year-old woman who is a non-smoker – for her, there is a 4% chance of death, but a 34% chance that she will be unable to work for 2 months due to illness². 
 
Don’t rely on savings or sick pay
With income protection, you wouldn’t need to use savings if you were off work. Besides, 42% of working adults think their savings would only last them for up to a month³. Most salaried employees are entitled to £109.40 per week for up to 28 weeks in statutory sick pay, which may not be sufficient. Meanwhile, freelancers would not be eligible for any help from the state, making protection particularly vital for them.  
 
The difference between the types of insurance
Even if you have critical illness insurance, income protection is strongly recommended. Critical illness policies usually only cover specific illnesses, while income protection can help if you are signed off sick due to any injury or illness. Life insurance, on the other hand, is there to help your loved ones in the event of your death. But income protection directly benefits you, regardless of whether you have loved ones to care for.
 
As with all insurance policies, conditions and exclusions will apply. 
 
1 Royal London
2 Risk Reality
3 Legal & General
 

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