Want a better deal on your mortgage?

Receive exclusive mortgage rates straight to your inbox

Call us: 0345 305 2540
Need help? 0345 305 2540
Remortgage Calculator Calculator

Mortgages: A Ticking Time Bomb

MORTGAGES | 01.06.2022

The Money Saving Expert has recently described mortgages to be ‘A ticking time bomb’ – but what does this mean? And how can you protect yourself from what’s to come? With the cost of living on the rise, Martin Lewis held a show, on Tuesday 24th May, focusing on and highlighting the ever-worsening cost of living crisis, which touched on everything from energy bills, to holiday costs, before warning mortgage holders, and those looking to get one in the near future.

Rising interest rates and the tightening of our purses due to the current cost of living crisis has created what he calls a ‘ticking time bomb’. By this, he means homeowners may be surprised by the rates they are given when it comes to remortgaging their homes as they may not be as attractive as their previous rates. 

What does it mean?

This rise in interest rates could mean families on fixed-rate mortgages may struggle to pass affordability checks once their current deal comes to an end. This leaves us with a ‘ticking time bomb’ - many people will be faced with higher rates, and therefore will not pass affordability checks meaning they won't be accepted for the remortgage with the new rates. 

Will I be affected?

If you have a fixed mortgage rate deal, then you won't be affected by rate hikes on repayments specifically, but you could experience a ‘rate shock’ when it’s time to remortgage as cheaper deals will no longer be on the market. Opting for a shorter fix when going for your next deal, may result in you paying more over time. You may want to consider a long term fixed-rate mortgage - they’re growing in popularity due to being able to avoid further rate rises by locking in an interest rate. You will also avoid the fees involved with remortgaging every few years.  We are urging mortgage holders with six months or less on their fixed-rate mortgage to speak to a mortgage broker to explore options available, and how you can start planning ahead as soon as possible. Here at TaylorMade, our expert advisors are here to offer advice and help you through your remortgaging process.       
Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

Complaints:

In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567

Your mortgage will be secured against your property.

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

Our fee for this service is 1.95% of the mortgage balance (minimum £1,295 to a maximum of £2,995 although reduced to maximum £1,995 without debt consolidation). Typically this will be £1,995.