Is your mortgage expiring soon?

There are a lot of mortgagees out there that have a mortgage that is about to expire. Generally what this means is that the interest rate they have been used to paying will switch over to their current lenders standard variable rate.

Many people have been finding that the difference between what they were paying before their mortgage expiry to what they are expected to pay now, has doubled and in some cases, trebled! Obviously this is a big hit and a lot of households have been struggling to absorb the increase, which in turn has been causing mortgage arrears.

If your mortgage is coming to an end soon and you are looking to renew, then the first place to go is your current lender as you already have a relationship with them and they will be very much aware of what your current situation is. They will be able to at very least, let you know what options you have for renewing.

A mortgage extension is another option that could be considered and would remain solely on the discretion of your lender. If the interest rates have gone up considerably since you took out your mortgage, then chances are that the borrowing rate for your lender has also increased, making them more reluctant to approve an extension. However, I am a great believer in the old adage, “if you never ask, you never get”.

Standard variable rates do have some upsides, like you are not locked into a fixed term so you can switch mortgage deals at any time and there are no early repayment fees. However, this offers little comfort if you are not in a position to be able to pay the higher interest rate or even pay your house off all together! An obvious downside to a standard variable rate is that your monthly repayments can go up one month and come down the next, making budgeting extremely challenging.

Expiring mortgages have become a real cause for concern over the last couple of years due to the rise of inflation and interest rates close alongside. Once your mortgage has expired, the landscape changes dramatically and hands more power over to your lender if you find yourself falling into mortgage arrears. Simply talk to your lender as early as possible and avoid being one of the many mortgage holders that leave it to the very last minute to get help. 

If you are someone that has left it to the last minute, all may not be lost and repossession can be stopped. Talking to, or finding help from someone who can look at your options for delaying or even stopping repossession or even better, communicate with your lender on your behalf, is by far the better option.