Changes in House Prices
House price inflation rose by 10.6% in August, up from 8.5% in July as buyers rushed to beat the end of the stamp duty holiday. Government figures from the Office for National Statistics data show that the average house price across the UK reached £264,000 in August, some £25,000 more than a year earlier. Should an increase in interests rates materialise, the likelihood is that it will be fairly palatable for the average homebuyer.
5 Cost Cutting Steps for Mortgage Repayments
UK mortgage interest rates are at an all-time low, yet one in ten homeowners have reported being unable to afford their mortgage payments. Now is the time for homeowners to take action to make their mortgage more affordable. Good news! We have 5 steps to bring down those monthly repayments!
Once the minimum term on your mortgage ends you generally go onto your lender’s SVR. These are higher rates than fixed rates and should be avoided if possible.
With rates so low currently, now is the perfect time to remortgage and lock in a fixed rate as the Bank of England has already advised the rates could increase to offset rising inflation.
If remortgaging isn’t an option, you might be able to reduce your monthly repayment by increasing the overall term of your mortgage. In the short term this can give you some breathing room, however, be aware that you will be tied in your payments for longer.
If you are struggling, you might be able to change your mortgage to interest-only. This should only be a temporary switch, as you won’t be making a dent in the overall loan.
Another way to cut costs if you are worried about mortgage repayments, is looking to see if you have insurance cover. Mortgage payment protection insurance can often help with mortgage repayments if your incone has dropped due to sickness or recent redundancy.