UK mortgages are at their highest interest rates in 16 years so if you’re a homeowner who’s facing a home loan hike or if you’re about to buy a property in Cheltenham, you might be wondering how to cope.
We’ve got some useful tips for existing homeowners and hopefuls so that you can meet any challenges your mortgage might send your way.
Find out when your current mortgage term will end
If you know ahead of time when your current deal will end you can plan ahead and start looking around for other products. Your lender might be able to offer you a preferential rate if you stay with them.
Find out how a rise will affect your monthly payments
If you know how much more you’re likely to be paying for your home loan each month you can start to make budget changes ahead of time to create a savings buffer.
If you’re a first timer, be realistic about what you can afford
You might have your heart set on a three-bedroom house in Cheltenham, but the average price of such a dwelling is £436,791. If you can afford this, great, but if you can’t, then have a look at somewhere like Bishop’s Cleeve, where a similar property averages at £370,000.
Similarly, Charlton Kings is a popular area that’s slightly closer to Cheltenham than Bishop’s Cleeve but isn’t much more expensive, with a two-bedroom house in Charlton Kings coming in at an average of £285,000.
Make sure you’ve got the best mortgage deal possible
If your deal is coming towards the end of its term then you need to be looking around for a new one anyway, but it might be worth making the jump a little bit earlier. This may involve some early break fees, but it could work out that you save more on your new repayments than you’ll pay in fees, so never be afraid to ask your lender.
