Consumer finance guru Martin Lewis alerts homeowners to possible steep increases in mortgage repayments as fixed-rate deals end, offering essential advice for early preparation and financial planning on his TV show.
UK consumer finance expert Martin Lewis has highlighted the potential increase in mortgage payments for homeowners coming to the end of their fixed-rate deals in 2024. On his television programme, the Martin Lewis Money Show Live, Lewis cautioned that monthly repayments could rise by £150 for every £100,000 owed.
His advice for those affected included preparing early by using a mortgage calculator to assess potential future payments. Additionally, he urged homeowners to mark the calendar six months prior to when their fixed rates are due to finish. This preparation is key as lenders often permit customers to commit to new deals in advance of their current one’s expiration.
To mitigate financial pressure, Lewis advised viewers to save, aiming for an emergency fund that covers three to six months of expenses. The urgency of such planning comes against a backdrop of fluctuating interest rates; while Nationwide announced a substantial cut in their mortgage rates, other financial institutions have done similarly. Nonetheless, some industry commentators forecast that higher rates may remain due to inflation and broader global financial uncertainties.
In the same broadcast, Lewis shared tips to enhance the likelihood of mortgage approval. He suggested that people should meticulously check their credit files, correct any errors, and practice frugality ahead of applying for a mortgage. He also advocated the use of mortgage brokers, who have access to lending criteria unavailable to the public. These recommendations are primarily aimed at helping homeowners navigate the evolving mortgage market.