Interest rates rising – how to avoid a mortgage headache

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After a series of hikes to interest rates, people are doing what they can to avoid a mortgage headache. We take a look at your options.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

10 July 2023

We’re raiding our savings at a record rate. New Bank of England figures show that £4.6 billion flooded out of banks and building societies in May. In the face of a looming remortgage headache, a chunk of this money is likely to have found its way into mortgage accounts, as people hurriedly pay down debts.

In May we paid off £0.1 billion of our mortgages – hot on the heels of repaying £1.5 billion in April. It’s an understandable reaction, but it’s worth considering the trade-offs you might be making.

This article isn't personal advice. If you're not sure if a course of action is right for you, ask for financial advice.

It’s easy to see why people are so worried about remortgaging. The latest edition of our savings and resilience tool report found