Stubborn inflation figures lead to mortgage blues as interest rate rises. Mortgage worrries what can you do? People with low-cost mortgage deals will be bracing for their fixed rates to come to an end and sadly find that their monthly payments skyrocket. The ultimate impact of this is that there is now a real risk of people falling into arrears. If you are in this position, there are somethings that you can do to help combat the worst happening, which would be for your home to be repossessed.
We have seen huge turbulence in the mortgage market over the past week or so with lenders withdrawing products with next to no notice. The only thing that people looking to secure a deal at this time can do is get all the relevant documentation over to your lender or mortgage adviser as quick as possible to avoid you losing the deal and ultimately having to find another or pay more when the same product is put back on the market at a higher rate. Mortgage worrries what can you do?
If you are coming to the end of your mortgage deal, on a variable rate or looking to buy there are some things you can do now to soften the blow of rising interest rates
Borrowers should act now
If your fixed rate deal is coming to an end in six months or less get in touch with us today. There is no telling what the future may hold but at least in the short-term things are unlikely to get cheaper so lock in now.
Think about a longer term
While it may sound like a scary amount of time, opting for a mortgage with a longer term can help reduce your monthly payments.
Work out exactly how much you can afford to pay monthly
If you are worried that you will not be able to afford your increased mortgage payments do not bury your head in the sand – take some time to work out exactly how much you can afford to pay.
Speak to us
Mortgage worrries what can you do? Lenders have a duty to act fairly with customers who are having difficulties. They may be able to offer a payment plan, mortgage holiday or even extending the term of your mortgage which can have a dramatic impact on monthly payments or if your home is worth more than the mortgage, you might be given the option of adding your arrears to the total amount you owe and pay it back over the lifetime of the mortgage.
Unfortunately, the government has already ruled out a mortgage relief scheme, as their number one priority right now is reducing inflation and such a scheme would likely prove inflationary. Speak to us first before opting for any plan, as some plans may end up with you paying much more interest over the lifetime of your mortgage.
22nd June 2023, Karen Noye, mortgage expert at Quilter: