• If you are on a fixed or capped rate mortgage, it would be a good idea to check whether you are approaching the end of the guaranteed or capped period. If you are, you could suddenly find that your interest rate zooms up to your lender’s standard variable rate – which is likely to be much higher. If this is the case, you should be talking with your financial adviser to ensure that you are switched to another deal at the right time. In most cases, this should be possible with a minimum of fuss and limited costs. But even if there are charges involved – and many lenders will at least require a fee for closing your current mortgage or switching you to a new deal – this is likely to be better than suddenly having to pay the full rate.
• If you have a mortgage that carried a reduced introductory rate and the offer period is due to expire, you should also be looking at the alternatives. In this case, however, or if you received a cash-back payment on completion of your house purchase, you could well find that there is a penalty for switching your mortgage even after the expiry of the initial period. In this case it is important to seek individual advice about the potential benefits and costs of switching.
• If yours is a variable rate mortgage, then now might be the time to consider a fixed rate deal. Even if interest rates do not rise any further – and some people think that base rate could approach 6% before the end of the year – they are unlikely to fall significantly for some time to come. A capped rate mortgage, where interest rates can fall, bit not rise above the limit set at the start of the deal, could be a better alternative.

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