If you’re coming off a low fixed-rate mortgage from a few years ago, you’re not alone in feeling the impact of higher repayments. Many households are seeing monthly costs rise significantly and for some, it’s becoming difficult to keep up.
The good news is that support may be available, and lenders may be more flexible than many people realise. Following guidance from the Financial Conduct Authority, lenders are expected to offer practical support to borrowers who are struggling. This means you may have options and it’s important to explore them early.
If your fixed-rate mortgage deal is coming to an end, you may move onto a new rate that is higher than your previous one. This can lead to an increase in your monthly repayments and may place pressure on your finances.
There are a number of options that lenders may consider, depending on your individual circumstances.
One option is extending your mortgage term, which may reduce monthly payments by spreading the cost over a longer period. Some homeowners may also temporarily switch to interest-only payments, which can lower costs in the short term while they regain financial stability.
Product transfers may also provide savings without the need for a full remortgage application. In some cases, lenders may allow temporary payment reductions or agree tailored arrangements based on your situation.
It’s important not to ignore the problem. Missing payments may affect your credit file and could limit your future options.
Speaking to your lender early may help you access more manageable solutions, as they are often able to provide support before the situation worsens.
It may also be helpful to review your overall financial position. Small changes, such as restructuring debts or adjusting your mortgage product, may make a meaningful difference to your monthly costs.
You may wish to consider whether there are areas where you can reduce spending or make adjustments to better manage your finances during this time.
Every situation is different, and what works for one person may not be right for another. That’s why getting personalised advice is important.
Get in touch with one of our friendly advisors, if you’re concerned about your mortgage payments or would like to explore the options available to you,
We can help you understand your choices and next steps.
Your home may be repossessed if you do not keep up with repayments on your mortgage.
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
