Ways to make your mortgage more affordable

In the current economic climate, a significant number of UK households are facing the prospect of increasing mortgage payments. According to a recent Bank of England report, this trend is set to affect about three million households over the next two years, with approximately 400,000 of these anticipating “very large” increases in their mortgage costs.

These changes are primarily due to the expiry of fixed-rate mortgages and subsequent transitions to potentially higher standard variable rates (SVR).

If your mortgage deal has 6 months or less to run, we recommend you contact our team so that we can help you explore the options available to you.

Market Movements and Predictions
In anticipation of the Bank of England’s Monetary Policy Committee meeting scheduled for 1 August, there has been a slight easing in mortgage rates by some lenders, such as HSBC, Barclays and Santander who have made recent reductions to some of their rates..

These adjustments reflect a broader market anticipation of a potential rate cut. Economic analysts are projecting that the Bank of England might lower the base rate to as much as 3% by the end of 2025, which could gradually alleviate some of the pressure on mortgage rates.

Strategies to Manage Increasing Mortgage Costs
Here’s how we can assist you in managing your mortgage effectively during these fluctuating times:

Consider an Interest-Only Mortgage: For immediate reduction in monthly payments, switching to an interest-only mortgage could be a temporary solution. This will lower your payments as you’ll only be paying the interest on the loan. It’s important to note, however, that this won’t reduce the principal amount.

Extend Your Mortgage Term: Another way to manage rising costs is by extending your mortgage term. This can spread your payments over a longer period, reducing monthly dues but potentially increasing the total interest paid throughout the mortgage.

Switch to a more competitive deal: If you have 6 months or less to run on your current mortgage product, there is a good chance we can help to move you to an alternative product. safeguarding you from paying higher standard variable rates. 

Get In Touch Today
Our team is ready to provide you with tailored advice and support to help you navigate your mortgage options effectively. Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.