CAN YOU GET HELP with your mortgage?

While cash savers rejoice over rising interest rates, the 14th consecutive rise we saw at the start of August will have rattled homeowners, as many face extortionate increases in their mortgage repayments

- KALPANA FITZPATRICK

The Bank of England base rate now sits at 5.25% – up from 5%. Interest rates are now at the highest levels since 2008. But while the Bank continues to hike rates to fight high inflation, the impact on mortgage holders coming out of cheaper fixed deals is severe, as many face mortgage rates above 6%.

At the time of writing, the highest rate for a 75% LTV was 6.88% and the average standard variable rate was an extortionate 8.49%*.

If you have a mortgage and are coming out of a fixed-rate deal, you could potentially be facing hundreds, if not thousands, in extra costs as your rate jumps. Many families may find they are unable to keep up with payment and risk getting into arrears.

The good news is that if you are struggling with your mortgage payments, then there is help – especially as the government has stepped in to ask lenders to support homeowners as much as possible. Many lenders have signed up to the government’s Mortgage Charter, pledging to do more to help mortgage holders manage payments. 

Here’s everything you need to know about getting help with your mortgage.

Talk to your lender