As fixed-rate mortgage deals come to an end, many homeowners are unsure about their next steps.
UK Finance’s Household Finance Review notes that although more deals are coming to the end of their term, many borrowers haven’t yet taken action to refinance. Some expect interest rate cuts and are holding off, while others feel confused about their options.
If your deal is coming to an end, it’s important to understand what happens next and how to make the best choice for your household finances.
When your fixed-rate period finishes, your loan usually moves automatically onto your lender’s Standard Variable Rate (SVR). This can be significantly higher than your previous rate, meaning your monthly repayments could rise. Remortgaging before that happens allows you to secure a new deal and avoid unnecessary costs.
With household savings on the rise and tax-free ISA limits no longer under review, some borrowers may be tempted to set aside spare cash rather than reduce their mortgage. Both approaches can make sense, but weighing up the guaranteed benefit of lower mortgage payments against potential savings returns is key.
Don’t wait until your deal expires to explore your choices. By getting in touch and understanding the myths, you can take control of your repayments and avoid unwelcome surprises.
If you’d like to discuss the options available to you, why not get in touch with one of our friendly advisors.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors
