With the news this month that average mortgage rates have now reached their highest level in 15 years – 6.66%1, and that over a million people are facing a hike of £500 a month in their mortgage repayments by 20262, it highlights the importance of seeking professional mortgage & protection advice in such a volatile market.
If you’re looking to move home, or have a remortgage coming up soon, then it’s highly likely that your monthly mortgage repayments will be much larger than what you’re used to, however, with the complexity of the deals available, we are ready to help find the most suitable deal for your circumstances, for when the time comes.
Plan ahead & speak to us
Given that mortgage repayments are likely to rise, the wisest thing you can do is to plan ahead to see how this impacts your finances, and identify if there’s anything you need to change now, which will benefit you much more when it’s time to move to the new deal.
You’ll most likely be contacted by your lender, offering deals and opportunities to change your mortgage, but we would recommend seeking our advice before making any decisions.
As your mortgage & protection advisers, we are here to support you through the challenging times. Book an appointment with us to review your existing deal, and we’ll be able to look across the mortgage market across deals from a wide range of lenders, and have access exclusive deals that are not available on the high street.
We’ll take time to look at your exact circumstances and build an understanding of your goals, which will help us to find the most suitable mortgage for you. In such a turbulent and fast-changing time, you need to be sure that you are making the most appropriate, well-informed decision for your situation, so we are ready to give you the advice you need for when you need it.
What to do if you’re struggling
We know that times are tough right now, so if you are worried about meeting your existing mortgage repayments, then we want to do what we can to point you in the right direction to get help at the earliest possible opportunity.
Start by talking to your mortgage lender and make them aware that you are struggling. There are a range of measures that they may offer to help with a situation, such as switching the mortgage to interest-only for a temporary period or reducing monthly payments for a set timescale, for example.
At the same time, it’s worth bearing in mind that making changes, even temporary ones, may result in higher monthly payments in future or paying back more overall. Mortgage borrowers should carefully consider any steps they take and customers who can keep up with their payments should continue to do so.
For this reason, as well as speaking to your lender immediately, we also recommend contacting us at the same time to talk through anything related to your mortgage, your monthly payments or even if you are concerned about how you could be affected if rates were to rise further – we are here to help. We will be able to look at your specific circumstances, explain everything that you need to know and help you make decisions that are the most appropriate for you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Sources
BBC News (2023). Mortgage rates soar to highest level in 15 years. Available at: https://www.bbc.co.uk/news/business-66153812 (Accessed 17 July 2023)
BBC News (2023). Mortgage payments set to jump by £500 for one million households. Available at: https://www.bbc.co.uk/news/business-66172954 (Accessed 18 July 2023)
All the information in this article is correct as of the publish date 27th July 2023. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
