Do customers face a tough Christmas?

Follow my Four "P" Rule - Prior Preparation Prevents Panic - For consumers coming off historically low fixed rates. The main advice from me - postpone Christmas, and curb your spend, particularly for those that have high mortgage balances that would struggle with the current interest rate arena.
Act now, and make changes to your spending habits, clear down any unsecured debts, and don't be tempted to take out additional debts. Talk to a mortgage broker now to understand what your new payments will be and if additional help can be offered, by way of altering the terms or type of your existing mortgage. Follow these steps and you might salvage something for Christmas.

There is no shortage of people coming off super cheap fixes and going on to either high fixed deals or uncomfortably high standard variable rates. The festive period is not going to be amazing for lots of homeowners this year.
We have already arranged mortgages for many of our clients whose rates need to be switched over Christmas because they are well into the six-month rate change window.
If borrowers do take a product transfer or remortgage deal, they need to make sure they switch to cheaper deals with their lenders if and when they are available.

Christmas is traditionally a tough time financially for many families that try to deliver on their children's expectations, along with the other costs of food over this time of year.
With the cost of living crisis having squeezed any disposable income, with many households facing higher mortgage payments and the continuing high inflation making everything you buy for the festive period more expensive, this year's celebrations will certainly be bringing financial stress as an unwanted gift.
The best advice is to sort your new mortgage earlier and if the payments look to be difficult, then we would discuss options such as amending your term or other monthly savings you could make to help you keep the roof over your head.

At risk of stating the obvious. My advice is to plan your budget. Map out all income and outgoings. If necessary cut any non essential payments. It’s always surprising how many small Direct Debit payments are lurking about. Review all general insurances and be ready to change provider to get a better deal, same goes for utilities. Do you need to be paying as much for a mobile? Make a packed lunch, buy one less coffee a day, workout in the park not the gym, etc etc. The knock on effect will be felt in the wider housing market as affordability is restricted, less buyers will be willing to go for it. Little support can be given in the immediate situation. Certainly much more financial education in schools to get the message embedded at an early age to help future borrowers. Best advice would be to see a broker sooner rather than later. Consider a 6 month switch to interest only under the new mortgage charter. It could give you enough breathing space to clear some personal debt or save.

For many people who will be coming off fixed rates over the coming months, they will already have a good idea of what their new monthly payments will look like. As fixed rates have gradually come down recently, things may not be as bad as they initially expected, although monthly payments are almost certainly going to be more than what they currently pay. Our advice to our clients in this position has been to extend the term of their mortgage if possible, reduce their loan to value to secure the best rate available, and in some cases, move over to an interest-only deal. We've also helped them with looking at other areas of household expenditure that could be reduced to re-allocate that budget towards the mortgage payments.