5 Tips To Manage Spiralling Mortgage Costs

We gather and discuss five helpful tips for buyers and homeowners to reduce mortgage costs and manage raised interest rates.

Increased interest rates left buyers and homeowners facing spiralling mortgage costs, with those who opted for SVR the most vulnerable. 

One of the recent surveys suggests almost half of households reported worries about the effects of rising interest rates on their mortgage costs. Moreover, there is no universal solution to everyone's situation. But what are the possible ways to reduce these costs? Experts at Norton Finance highlighted several ways to manage the new market settings.

Managing Mortgage Costs

Opting for longer terms. Extending mortgage terms is the easiest solution to decrease the monthly repayments despite increasing the overall expenditure of a mortgage. Interestingly, an increasing number of lenders become more flexible with lending into retirement now.

Going for interest-only payments. Norton Finance anticipates seeing a rising number of part and part mortgages as we move further.

Lifetime mortgages. Older customers might benefit from lifetime mortgages that allow either interest-only payments or roll up to have no payments if they have trouble with repayments.

Remortgaging to fixed rates. Those households with ending fixed-rate products might benefit from remortgaging as the SVRs have significantly changed over the past year. 

Getting help. Seeking support from a mortgage broker seems like the most sensible approach when trying to manage increased mortgage costs. Specialists advise customers to contact a broker who ensures they get the most optimal deals for their own situation without the hassle of navigating the often complex mortgage market.

Norton Finance Shares

Experts highlight that customers must ensure they are mortgage- or remortgage-ready by checking their credit history and credit card overdrafts and limits. Most lenders have altered the affordability criteria because of the increased living costs and interest rates. As a result, households should reconsider their monthly outgoings and cut any unnecessary payments from their budget.

The amount that can be saved depends on the individual settings, but for many, a sensible approach to their mortgages and budgets could save thousands of pounds.