How will the disappearance of less than 1% fixed rate mortgages affect you?

I recently heard that the end of November will see the last of the less than 1% fixed rate mortgage deals. That is quite a milestone. These low rates have been around for some time now, making borrowing large sums of money more affordable for a lot of people.

With them gone and the average fixed rate mortgage now sitting at around the 4.5% mark, it will see many needing to carefully review their finances when they next come to remortgage their property.

One of our clients, for example, is in line for a payment increase on his mortgage of over £4.5k a month. Another will have to pay an increase of over £3k per month. Many others still are having to find extra hundreds of pounds to cover their new monthly repayments.

This is why, in his latest article, David wrote that the decisions you make about your mortgage ‘can have a significant impact on your finances for years to come’. That is not scaremongering. It’s a genuine reality.

The mortgage market continues to change and evolve. And no matter how much money you have, a significant change to your mortgage payments can make or break your monthly budget. A big increase, as many may now see with the abolition of these super low fixed rate deals, may mean some hard decisions about the affordability of the lifestyle they have created.

But this is not something you have to weather alone. This is a good time to get in touch with us. Big market changes are when a financial adviser really comes into their own. We will not only look at your mortgage options with you. We can look at your full financial portfolio – your expenditure, your savings, investments and assets – as well as your needs and wants from life, now and for the future. Together we can map out all your options and guide you through your choices. Choices that will work best for you.