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The cost of living crisis remains a hot topic of discussion when it comes to mortgage renewal dates. Following the rising interest rates announced by the Bank of England on 23 March 2023, many homeowners are expecting to see an increase in their monthly mortgage payments when it is time to renew their mortgage.  How can you prepare for what the increase on your mortgage payments may be?

If you are coming to the end of your fixed rate deal, it is important to consider how your monthly payments may change.  The table below contains an example of the increase we are typically seeing to monthly payments. (Figures based on a House Purchase 2 year fixed rate repayment mortgage for a £100,000.00 mortgage, 25 Year Term with 25% deposit and no arrangement fees):

Preparation for your mortgage renewal can be done up to 6 months before the product end date, giving you a great opportunity to get ahead and find the best deal.  Our advice would always be to speak to a mortgage adviser. Here at David Allen, we appreciate the hunt for a competitive mortgage rate can be stressful, and our independent mortgage advisers have the knowledge and experience to guide you through your renewal process.  Our advisers are not restricted to specific providers and are able to research whole of market to ensure they are finding you the best mortgage deal.

David Allen Financial Services are here to help. If you are coming to the end of your mortgage term and would like some help and guidance to take the stress out of your re-mortgaging process, contact our independent mortgage advisers on 01228 711881 or 01387 270340.

** Please note the figures in this table were correct at time of publishing this article and may be subject to change.  Rates and monthly costs are based on those offered to homeowners reaching the end of their current mortgage rate tie-in period and new rates offered by Barclays. These were correct at time of print 17 April 2023.  Individual circumstances differ and some borrowers may be offered higher or lower mortgage rates depending on the lender involved, the loan to value ratio of their mortgage and the borrower’s credit rating.  Please request a personalised illustration for your circumstances.

_{David Allen Financial Services is a trading name of David Allen Financial Services (Dalston) Ltd (Registered in England & Wales, Company Number 06966976) and has its registered office at Dalmar House, Barras Lane, Dalston, Carlisle CA5 7NY.  The company is authorised and regulated by the Financial Conduct Authority.  Firm Reference 506138.  Your home may be repossessed if you do not keep up repayments on a mortgage secured on it.}