Blog Article

Life changes – so should your mortgage

Life changes – so should your mortgage

Date: 11 July 2022 | By: cosgrove

A cost-of-living crisis has emerged in recent months and has been exacerbated further by pressure on energy and commodity prices
following Russia’s invasion of Ukraine.  Life changes – so should your mortgage. The latest Office for Budget Responsibility (OBR) figures suggest inflation will average 7.4% across the rest of 2022, peaking at 8.7% during the fi nal quarter1.

Families have already been expecting a significant hike on their annual energy bills. As every penny counts, it’s important to consider all your options for budgeting and streamlining your outgoings; this could be the time to explore whether more favourable rates are available on your mortgage.

Paying over the odds?
If your mortgage deal has expired, it’s likely you are on your lender’s Standard Variable Rate SVR) and will have been hit already by recent
increases to the Bank of England Base Rate. SVRs can be higher than those available on fi xed deals, especially when interest rates are on an upward trajectory. SVRs fluctuate as interest rates rise and fall. Switching to a fixed rate mortgage deal instead could both save you money and make budgeting easier, as you’ll know exactly what is going out each month.

Take time to review and get advice
Life changes – so should your mortgage. You can switch your mortgage at any time you like but you could face early repayment charges ERCs) in doing so. Even if your current mortgage deal hasn’t quite expired, however, you could start the remortgaging process up to six months in advance, as many lenders allow you to lock into a product before the end of your current deal.

Getting ahead in the process can give you the time you need to assess your available options.

That’s where we can help – by searching the market for the most suitable mortgage finance for your circumstances. Life changes – so should your mortgage - so get in touch today.

1 OBR, 2022

Source: Essentially Mortgages Q2 2022