Facing Rising Costs in 2025? How to Manage Your Mortgage Renewal with Confidence
By David Baker
According to UK Finance, an estimated 1.8 million fixed-rate mortgages are set to be up for remortgage in 2025. Many of these homeowners and landlords secured ultra-low interest rates during the pandemic years when the BOEBR (Bank of England Base Rate) was slashed to historic lows. For those with previously agreed rates as low as 1-2%, the prospect of renewing at today’s higher rates can feel daunting.
Understanding the Mortgage “Payment Shock”
“Payment shock”, put simply, is the extra financial burden that clients feel when moving from these lower rates that are coming to an end into the modern mortgage rate market where rates are higher than the client is used to and this can often feel overwhelming.
Rest assured; LIFT-Mortgages is here to help you. We understand the mortgage market inside out and can help you take the right steps and secure your mortgages, bringing peace of mind to you and your family.
Don’t pay your lender’s Standard Variable Rate (SVR)
As your current mortgage deal comes to an end, it’s crucial to understand your options. Moving to your lender’s Standard Variable Rate could result in significantly higher monthly payments, often hundreds of pounds more, and offer little practical benefit. Instead, remortgaging or rate switching allows you to secure a new deal tailored to your circumstances.
Let us do the hard work so you don’t have to
At LIFT-Mortgages, we’re here to make the process as smooth as possible. Our experienced team provides tailored advice and ensures you know all available options. All we need to know is the date your deal ends. Ideally, this should be 6 months or less before the final date. We will then gather information about what you can afford and compare deals and find the right solution for you. We do all the paperwork to take the stress out of the process.
Don’t wait until it’s too late
While renewing your mortgage at a higher rate can seem overwhelming, taking action early and seeking expert advice can make all the difference. As a broker, we track the rates our clients apply for, and if rates drop with the same lender before completion, we can offer you the new lower rate at no extra cost.
Our team at LIFT-Mortgages are ready to support you at every step, ensuring you’re informed, prepared, and confident about your decisions. Get in touch today.