Attention Fixed-Rate Mortgage Holders: Prepare for the End of Your Mortgage
Homeowners currently enjoying the stability of fixed-rate mortgages have been shielded from recent interest rate hikes. However, experts are now advising them to brace themselves for the eventual end of their mortgage term to avoid financial hardship.
In a significant move earlier this month, the Bank of England raised interest rates from 0.75 percent to three percent—the most substantial increase since 1989. While those with tracker or variable rate mortgages will immediately feel the pinch with significantly higher monthly payments, even fixed-rate customers should not rest easy.
According to Money Saving Expert Martin Lewis, fixed-rate customers need to be proactive and plan ahead. Lewis warned that the key is to know the precise end date of your fixed-rate mortgage.
He recommends preparing three to six months before your mortgage term concludes. This preparation can involve tightening your budget and ensuring you have enough funds in your bank account to cover the additional mortgage costs that may arise.
Spring 2023 is anticipated to be a particularly challenging period, as the energy price guarantee is set to expire in April, and mortgage and interest rates are expected to be at their peak.
Keep in mind that the government is scheduled to unveil updated fiscal plans soon, though this has been delayed by a couple of weeks due to changes in leadership.
For expert assistance and guidance on securing a right to buy mortgage, don't hesitate to reach out to us at Yes FS. Our toll-free number is 0800 083 0449. We're here to help you navigate the evolving mortgage landscape.