After a period of rising interest rates and higher monthly costs, there are signs the mortgage market is beginning to settle. For some homeowners, that could mean welcome news. Your monthly payments may actually go down when your fixed rate ends and you explore new, more favourable deals.
If your deal is due to finish in the coming months, now is the time to understand what that means for you and how to make the most of it, expert advice can turn your confusion into clarity.
A different kind of change
In recent years, many borrowers faced the prospect of rate shock as they moved from ultra-low fixed rates onto significantly higher deals. But if you locked in your mortgage during the height of sharp rate increases in 2022 or 2023, you may have been paying more than average for some time.
With rates having eased slightly since then, your next deal could come with a lower interest rate – and that means the potential for smaller monthly repayments.
Why this matters
A reduction in your mortgage payments can create extra room in your budget. For some, that might mean more financial breathing space each month. For others, it’s a chance to re-invest in other priorities, from home improvements to long-term savings or protection.
It’s also an opportunity to review your mortgage in full. Even if your monthly payment is set to drop, you will still want to make sure your new deal is competitive, suits your circumstances, and aligns with your future plans.
Acting early
If your fixed rate is ending soon, it’s worth speaking to a mortgage adviser around six months before the date. This gives you time to explore the full range of deals, secure a rate in advance, and make sure you’re not automatically moved onto your lender’s Standard Variable Rate (SVR), which is often much higher.
Whether you’re looking to stay put or move house, an adviser will help you decide whether now is the right moment to fix again, move to a tracker, shorten your term, or even make overpayments while your rate is lower. Every borrower’s situation is different, so personalised advice is always key.
Making the most of lower payments
If you do find yourself with a lower monthly payment, think about how you can use that difference to strengthen your finances. You could increase your overpayments to pay off your mortgage sooner, top up your savings, or revisit your protection cover to make sure your home and family are supported.
This is about more than just taking the win, it’s about making sure today’s good news sets you up for tomorrow.
Is your fixed rate coming to an end? Expert advice can turn confusion into clarity.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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