Since the Chancellor, Kwasi Kwarteng, delivered the recent Mini-Budget, we\u2019ve seen the pound crashing to its lowest level against the dollar in 37 years, the Bank of England buying \u00a365 billion of government debt to stop some pension funds collapsing and the International Monetary Fund openly criticising the government and urging it to re-evaluate its policies.<\/p>\n
We\u2019ve also seen many lenders stop offering mortgages. In fact, a record 935 home loans were withdrawn on Tuesday 27th September, according to Moneyfacts \u2013 more than double the previous record set on April 1st 2020. As the UK continues to grapple with a cost-of-living crisis, there are widespread fears that interest rates and mortgage rates will soar, putting even more pressure on household\u2019s finances.<\/p>\n
So, let\u2019s step back, take a deep breath and ask what does this mean for you and your finances?<\/p>\n
Firstly, we would urge you not to panic. Of course, that is easier said than done, but even though there is considerable uncertainty right now, widespread panic among mortgage holders could cause brand new problems. Due to the current volatility in the markets, we can\u2019t be sure how much interest rates will rise in the coming months, and that\u2019s the reason why so many mortgage products are being withdrawn.<\/p>\n
Lenders aren\u2019t pulling out of the market completely, they\u2019re just reassessing the situation in light of recent events and not committing just yet \u2013 and that\u2019s a crucial point to remember.<\/p>\n
You may also be asking yourself if you should change your mortgage deal, even if you\u2019re currently on a fixed rate mortgage, or be wondering what to do if your deal is up in the next few months. Perhaps you\u2019re on a variable rate and feel wholly at the mercy of events beyond your control.<\/p>\n
But this upheaval cannot last forever, and we can expect a degree of confidence and certainty to return to the mortgage market at some point. At a time when interest rates look set to go only one way, and when people are already enduring a cost-of-living crisis, it might also be tempting to bury your head in the sand and ignore what\u2019s going on.<\/p>\n
However, help and support is available, so there\u2019s no need to look the other way and not open the letters dropping through your front door. If you are concerned about what all this means for your mortgage, there may be several options open to you. The best option right now is to get in touch with us.<\/p>\n
We can go through your situation with you and explain why all this is going on, as well as providing you with the assurances you need and talk you through all the various options open to you. While we would never seek to underestimate the scale of the market turmoil right now, you should remember that you\u2019re not alone and that we can help you determine what to do next, so you can move forwards with confidence.<\/p>\n","protected":false},"excerpt":{"rendered":"
Since the Chancellor, Kwasi Kwarteng, delivered the recent Mini-Budget, we\u2019ve seen the pound crashing to its lowest level against the dollar in 37 years, the Bank of England buying \u00a365 billion of government debt to stop some pension funds collapsing and the International Monetary Fund openly criticising the government and urging it to re-evaluate its policies. We\u2019ve also seen many lenders stop offering mortgages. In fact, a record 935…<\/p>\n