Will people reduce their monthly outgoings before the current rates of interest start to increase?
It is a very realistic possibility that in the near future people are going to find that the mortgage payments they are making will increase. This is only in line with interest rates set out by the Bank of England.
Most mortgage owners have benefited from a reduction in monthly repayments over the last couple of years but these very same people may find themselves struggling again as interest rates are hiked up.
The people on repayment mortgages will have some movement back to interest only but those paying only the interest will be most at risk. If you do not keep up repayments on a mortgage or any other loan secured against your home then you are at risk of losing your property. There are a great number of people with mortgage arrears that are simply trying to get ahead and out of the arrears, they are also very much at risk of a raise in interest rates by the Bank of England.
The first thing you should do if you think you are struggling with your mortgage repayments is to create or revisit your monthly budget for your finances in the home. If you are not able to keep within your budget deal with the part that is the problem,
- Do you need more hours at work or a better paid job?
- Are you spending too much in certain areas, housekeeping etc?
When you deal with a financial issue it can seem as though you are the only one with the problem, you are not and there are many people in the UK at present with the very same if not greater financial problem.
At Lewis Alexander, we specialise in helping people from all different walks of life with financial problems usually caused from changes in their personal circumstances. These people usually all have either mortgages or rental agreements with landlords and all our advice is confidential. We help people every day to regain control of their finances and look forward to a fresh start.
If you think you are going to fall behind with your mortgage repayments or any residential rental agreement you should seek advice as soon as possible. Most advice you seek is free but do not pay upfront fees for any advice, these companies are only helping themselves.
You can contact Lewis Alexander free of charge 24 hours a day using free phone 0800 018 6868
