• You should talk to your lender

If your fixed rate term is coming to and end in 2024 you could be affected by the rising interest rates. You will have to remortgage or you will be placed on your lender’s standard variable rate which is often expensive. When you remortgage the interest rate will now be higher for the new term.

If you are unsure about what’s to come with the rising rates you should discuss the options with your lender and they should be able to inform you about your existing plan as well as how you can navigate through the changes.

If you want to know why interest rates are rising and if you will be affected you can find out here. 

  • Review your finances

With your monthly payments increasing you should make sure you can financially support the new bill. You may have to figure out where to cut costs so you can make the new payments, or there may be alternative plans you can take on.

  • Compare other mortgages

Once you have determined what your mortgage lender is offering for your new term it is important to figure out what else is out there. Banks will have various offers and rates so choosing the right one for your situation is vital.

It may be helpful to seek out a financial advisor as they will be able to give you choices from across the market and advise you on the best for your personal situation. This could make the process a lot less stressful for you.

  • Take out a short term loan

If you decide to take on another fixed term loan then consider only choosing a two year plan so you can review the situation again when it ends to make the best financial choices. If you take out a longer term you could be stuck with high rates even if they fall in the next couple of years.

What are the different types of Mortgages?

The rates are often changing and many predict they will decrease towards the end of 2024 so it could be beneficial to not commit yourself to a lengthy term with the current rates.