Mortgage alert, ditch your ISA?, 2.7% l oan, £260 beauty £31, energy bill rising 54 %+?, cheapest way to spend abroad

UK interest rates rise from 0.5% to 0.75%
Mortgage alert. The cheapest deals are now double October's rates. If your fix ends within six months, or you're on the standard rate, check NOW if you can save

In October, there were over 50 mortgage deals below 1% and the cheapest fix was 0.84%. Today, the cheapest is 1.79%. That's equivalent to an extra £800 a year on a £150,000 mortgage.

And things are likely to get worse. The Bank of England last week made its third base rate hike in four months, to leave the rate at 0.75% (see our lender-by-lender rate reaction round-up). And further hikes are widely expected - City analysts Capital Economics expect it to hit 1.25% by the end of 2022 and 2% in 2023.

Yet while mortgage rates have increased, in a longer historical context, they're still cheap (see our mortgage comparison). This is especially true of the cheapest longer fixes which are currently only a touch more expensive than shorter ones, and give certainty for much longer...

That means everyone who has a mortgage which isn't already locked in to a decent rate for the foreseeable future should be checking if there's a better deal out there. Even if your deal ends in six months, there are options to lock in a rate...

Remortgaging simply means getting a new mortgage deal to replace your existing one. Here's how to bag a cheap deal...

1. Dig out the details of your current mortgage. Gathering the following info will help you when searching for a new deal:

- What's the rate? Plus monthly payments & outstanding debt.
- What type is it? Is it a fix, tracker or SVR? See fixes v variables.
- When's the intro deal over? For example, when does your fix end?
- When must it all be repaid? In 10, 20 or 25 years?
- Will you be penalised to switch deals? Does your fix or tracker have an early repayment charge? If so, it isn't usually worth switching, though it can be on rare occasions. See Ditch your fix?
- What's the loan-to-value (LTV)? This is the proportion of the home's current value you borrow - for example, £280,000 borrowing on a home currently worth £350,000 is 80% LTV. Rates get cheaper the lower your LTV. See LTV help.

2. Check out your existing lender's cheapest deal. Switching to a new mortgage with your existing lender is known as a 'product transfer'. It didn't used to be a great option, but these days as your existing lender is allowed to forego affordability checks if you're not borrowing more, it can work out well. Plus there'll likely be less paperwork and lower fees involved. The savings can be huge, as Adam tweeted: "@MartinSLewis Just went for a new deal with my existing provider at the end of a five-year fix, was able to save £175/month [£2,100/year] - same terms. I used the mortgage tool on MSE."

Yet even if your lender has a cheaper deal, do the next step as well to compare all products (like Adam did).

- A note on mortgage prisoners. Up to 250,000 mortgage holders are stuck paying expensive mortgages to companies that don't issue new mortgages, meaning they can't take advantage of existing lenders' affordability check carve-outs. Our Mortgage prisoners guide has help on what to try, though sadly we know it won't fix the issue for everyone - in fact, it won't help the majority - but it is worth a go.

3. Use our comparison tool to see the market's cheapest deals - are big savings possible? Sub-1% mortgages have gone, but there are still historically cheap deals out there - though we don't know for how long. Spend a few minutes on our Mortgage comparison tool to find your cheapest deal. Do note that low-rate deals can mean higher fees - so our tool factors these in to the 'MSE total cost' to make comparing easier.

The biggest factor affecting rate is your LTV. Mortgages start at 95% LTV, but you'll get a cheaper deal at 90% LTV. It's cheaper again at 80%, at 75%, and then bottoms out at 60% of a home's value. There can also be minor gains at each 5% in between.

Should you fix? The more you value certainty and being able to stick to a budget, the more you should hedge for a fix, and for fixing longer. If you're worried about interest rates rising, which City experts predict is likely (though there's no guarantee), then fixing is a bit like an insurance policy against this.

Trackers and discount mortgages are often slightly cheaper, but the rub is most move in line with the base rate - for example, people on trackers have seen their rates increase three times since December. Yet if today's rate is your prime concern and you can ride out moves upwards, you may want to go for it. See our full fixes vs trackers analysis for more.

4. Use our range of calculators to make it easy to compare deals. To simplify the process, plug your numbers in here...

- Basic mortgage calculator - including what it'll cost
- Compare two mortgages
- Compare fixed-rate mortgages
- Should you ditch your fix?
- How much can I borrow guesstimator

5. It's not just about the cheapest mortgage - it's about the cheapest mortgage you'll be accepted for. There are two key financial checks the lender will do on you when you remortgage. Unfortunately each lender is different, so there's little point trying to second-guess it all, but there are ways you can improve your prospects.

- Are you creditworthy? A poor credit history can torpedo a remortgage application, or at least mean you don't qualify for the cheapest deals. So check your credit file (for free) to ensure there are no errors, then minimise other credit applications, and pay down debts if you can. See 37 tips to boost your creditworthiness.

- Can you afford it? Lenders must also do strict checks to see if you can afford mortgage repayments. And with the rising cost of living, it's only getting tougher, as they'll look at how much you spend on essential bills when working out whether you can afford a mortgage. They'll want evidence of income, bills, expenses and sometimes even eating out.

Yet lenders don't just assess if you can afford to repay at current rates. They also 'stress-test' how you'd cope if interest rates rocket, so you'll need to have a bit of leeway in your finances.

Likely to be close to the wire? Being frugal in the months leading up to application and not applying for unnecessary credit can help. For more tips, see 18 ways to boost mortgage acceptance.

6. As mortgage acceptance gets tougher, a good broker is more important than ever. Lenders' acceptance criteria differ from one to the next. For example, one lender might include overtime or commission in your income assessment, and another might only count your base salary. Or some lenders are wary of non-standard properties, such as those above shops.

To navigate the maze, we strongly suggest you use a mortgage broker. They do the 'finding a deal' work for you and have details of most lenders' acceptance criteria, which aren't easily obtainable by the public, plus many deals (even some product transfers) that can only be accessed via brokers.

Nationwide 'fee-free' brokers (they earn via commission from lenders) include L&C Mortgages*, Habito* and Trinity Financial* (it normally charges a fee, but not via this link). Some with more complex situations may want to pay - for example, CMME* specialises in mortgages for the self-employed. Full help in top mortgage brokers.

Self-employed? It can be tougher to get a mortgage, so to help smooth acceptance, ensure you've got 2-3 years of trading accounts ready, plus three months of business / personal statements. Yet your pandemic employment record and finances over that time can have a big impact too. If your income's been patchy over the last few years, a good broker's likely to be vital.

7. Can you save with a green mortgage? (Spoiler alert: for most, the answer's no). Some lenders are now offering so-called 'green mortgages'. Typically these give you a discounted interest rate or cashback if your home has an A or B efficiency rating, or if you're planning on carrying out energy efficiency improvements. Yet even if you're eligible, it's best to go for the cheapest rate deal you can get - and these aren't usually green mortgages. See how they compare in our new Green mortgages guide.