Recent jumps in mortgage rates, driven by global uncertainty, are increasing pressure on borrowers, particularly those approaching the end of a fixed deal. Kevin Mountford, Personal finance expert and co-founder of Raisin UK, highlights the importance of acting early and reviewing wider finances, offering useful talking points for brokers supporting clients through a more volatile rate environment.
Personal finance expert and co-founder of Raisin UK, Kevin Mountford:
“The knock-on implications of war in the Middle East are starting to come through thick and fast. In the last few days, we’re seeing major jumps in mortgage rates. For anyone coming to the end of a fixed deal, the risk is not just a higher rate, but a sudden increase in monthly repayments at a time when wider living costs are still under pressure.
Our Great British Savings Report shows that only 35% of respondents feel confident and in control of their savings as it is. Current market volatility and the prediction that inflation will rise to 4% this year, up from 3% this month, means naturally it is a worry to think about what more people can do to protect themselves financially, but critical.
It’s essential to act early. Many borrowers can secure a new deal before their current one ends. This can provide more protection if rates move again. It’s also vital to review the wider financial situation and assess how money can work harder. Any cash left sitting in low-interest accounts is a missed opportunity. There are still some competitive rates on the market, so acting early can help build a stronger emergency buffer, offset higher living costs and help you become more financially resilient.”
