Repossessions and mortgage arrears have been falling with the level being at its lowest since 1994 (source: UK Finance) however borrowers still need to be prepared for interest rate rises in the future.
The record low interest rates are helping borrowers but mortgage costs are certain to rise at some stage in the future and it is important you plan ahead now. Take advantage of the rates being so low and pay down your mortgage balance as quickly as you can.
There are many excellent fixed rate deals available and if you think you may struggle to pay your mortgage if interest rates were to rise a longer fixed rate makes sense keeping your monthly payments low and helping with budgeting.
Borrowers should not enter into a mortgage contract blind, we would highly recommend seeking professional advice from one of our expert mortgage consultants so you are fully informed of what your monthly mortgage payment is going to cost you now and what they could be in the future, it is so important to make sure you mortgage is not only affordable now but also when interest rates do finally rise. Our advisers will be long term relationships with you and will give the very best advice based on your current needs and circumstances helping you plan for the future.