As we’ve all realized recently, interest rates can fluctuate. When they go up, it’s good for those with savings, but not so good for those with a mortgage. But although the steady increase in interest rates over recent years has made things tough for mortgage holders, all the predictions are that rates will go back down, we just don’t know when.  

So, let’s say you have a mortgage and that you’re just about coping with on a monthly basis. Do you stick with the mortgage you have, ask your lender for a new fixed rate or search the market for something more financially attractive? 

These are all valid approaches, either one of which could work well, but the one thing you should never do is to ‘do nothing’. Do yourself a favour and start looking around, do your research and find out more, even if you decide to stay as you are … you owe it to yourself to look around or just make it simple and talk to us at Sirius Financial. 

Analysis of data from the Financial Conduct Authority shows that an average of 4,200 households a day are coming off fixed rate deals and are being forced into deals with higher payments. It’s expected that by November of this year, nearly 900,000 households will be paying an extra £240 a month on average for their mortgage.  

The problem is, rates have been low since 2008 and we’ve all got used to them. In fact, it’s the change in circumstance that causes the issue, we’re simply not prepared for 7% or 8% rates. But what are the option’s available? 

As householders you do have a choice. You could remortgage and get a new and improved fixed rate deal, you could extend the term and reduce the monthly amount payable or you could even opt for an interest only deal for a short period of time, just to make things easier.  

One recent client of ours at Sirius Financial were coming to the end of their fixed rate deal. They had a mortgage of £207,000 and were on a rate of 1.45% which meant a monthly payment of £780pm. Standard remortgaging would have seen a rise to 5.18% which would have resulted in £1134pm payment, an increase of £354 each month. However, when discussing it with the client, it turns out they also had £24,000 worth of unsecured debt which was costing them an additional £872 per month.  

What did is consolidate the unsecured debt into the mortgage (increasing it by £24,000) but the new fixed rate was much more favourable in comparison to what they were paying.  Overall, the total monthly payment reduced by £746, even though the fixed rate deal was higher. It’s really a question of having a broker that understands the wider picture.  

The main issue is that interest rates could actually carry on going up, before coming down. The best course of action is to talk to a mortgage expert that understands ‘whole of the market’ and not just one high street lender, someone like us at Sirius Financial.  

Our initial consultancy sessions are completely free but then once we understand your circumstances we will then advise you of the fee involved. Think of it as an investment that could see a significant return in the amount you save over the course of the mortgage term.  

Here at Sirius Financial we specialise in helping you find the right mortgage product. One that matches your needs, suits your property and works with your own very specific financial circumstance.  

We pride ourselves on being both approachable and professional but also operate with genuine empathy and understanding. So, if you’re thinking of taking a fresh look at the mortgage market, then why don’t you get in contact with us at Sirius Financial.