What help can you get with rising mortgage costs?

30 June 2023

As we lurch from one cost of living crisis to another, barely a day goes by without news about the Bank of England raising interest rates. 

We’ve enjoyed very low borrowing rates for a number of years now. Some homeowners have never known rates above 2%. But as some lender’s standard variable rates rise to an eye-watering 9% this will have a huge impact on people. Customers looking for a new mortgage deal as their current product ends, or people on their lender’s standard variable rate or tracker mortgages will see a significant rise in their monthly payments.

Remembering the fallout of the 2008 economic crash when some people lost their homes, understandably people are worried and wondering how this crisis can be avoided.

Thankfully the news sounds positive. This week the Chancellor, Jeremy Hunt, met with the big names in UK banking to agree on a Mortgage Charter to help customers deal with the rising cost of their mortgages. The measures include: 

  • Switching to interest-only payments for six months
  • Extending the length of the term of your borrowing.
  • 12-month minimum default period before repossession.

Moving to interest only for a while or extending the term of your mortgage will result in you paying more for your lending in the long run. However, if you need help now, these are options worth considering.

If you’re tied in with your current lender, we would suggest you contact them directly to explore the options available. The Chancellor has made assurances that taking either of the first two actions will not affect your credit score moving forward.

If you are coming to the end of your deal, or you are currently on your lender’s SVR, contact us as soon as possible so that we can research and secure the best deal on the market available to you.

The important thing to remember is that help is available. If you are concerned and want to discuss your situation, or are in a position to look for a new deal, contact the team at Peritus for expert advice on 0203 7455 893.


For more information and the government's Mortgage Charter click here

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

For mortgages, we can be paid by commission or a fee of usually £495 or a combination of both. The actual amount will depend on your circumstances.