Recent research has shown that thousands of households will face a mortgage increase between now and 4th July.

Many will face significant increases in their monthly payments.

The Research

The Liberal Democrats commissioned the research from the House of Commons Library. The data was based on the Financial Conduct Authority stats, which say 100,000 mortgage holders will face increases.

The Lib Dems said Rishi Sunak’s claim that his economic plan is working shows he is living in a “parallel universe” at a time when thousands of households will face a mortgage increase.

Liberal Democrat Comment

Treasury Spokesperson for the Liberal Democrats Sarah Only said: “This Conservative government crashed the economy, and now they are condemning hard-working households to a mortgage nightmare.  

“Rishi Sunak’s claim that the government’s plan is working shows he is living in a parallel universe, as every day, thousands of families are seeing their mortgages go up by eye-watering amounts. 

“The Prime Minister is set for a blue wall reckoning in key battleground seats where fed-up voters are ready to say enough is enough with this out-of-touch Conservative Government on 4th July.”  

What can I do to prepare for my mortgage deal expiring?

There are several things you can do to prepare for your mortgage deal expiring in 2024: 

  • You can start shopping around for a new deal early. The earlier you start shopping, the more time you’ll have to compare different deals and find the best one for your needs. 
  • Consider remortgaging to a longer-term fix. This could help to protect you from further interest rate rises in the future. 
  • Make sure you can afford your new monthly repayments. Before you remortgage, you must ensure you can afford higher monthly repayments. You can use a mortgage calculator to get an idea of how much your new payments will be. 
  • Get advice from a financial adviser. If you need help with what to do, it’s always a good idea to seek advice from a qualified financial adviser. They can help you to choose the right mortgage deal for your needs and circumstances. 
  • Consider a product transfer. 

When their mortgage deal ends, borrowers often face an overwhelming array of product options. 

Most lenders will allow you to switch your product to a new one with them. This can often be done up to six months before your existing product expires. 

Rates are only sometimes competitive for existing customers, and some borrowers may still choose to change lenders to access a better deal. 

A product transfer can provide greater speed and stability, reduced paperwork and no conveyancing fees or processes. 

How important is the use of technology

Lenders and advisers use sophisticated sourcing tools to match borrowers with the best product transfers available based on their unique needs. 

Using a whole-of-market mortgage adviser will help you understand your situation. They can provide clear and concise information about the different options available. 

Online chats with Lender AI-powered chatbots can be a helpful way to gather information. The chatbots can often help with answering basic questions you may have.

Balancing digitalisation with the personal touch

While technology is helpful, it is essential to remember that a mortgage is the most significant debt most people ever have. Face-to-face advice often brings peace of mind and reassurance when making big financial decisions. 

Mortgage advisers are valuable in helping borrowers choose the correct product transfer. If they provide whole-of-market advice, they can access a wide range of products and provide guidance based on their experience. 

If you need help and advice, please don’t hesitate to contact us.