Reducing the pain of higher interest rates

Are you dreading a rate rise?

If so, there are three things I think you should do now.

#1 Know your numbers

It's important to understand what your repayments will increase to when your rate rises.

If you underestimate your future repayments you could be in for a big shock.

However, even if you are in for a big shock, there may be ways to structure things differently to reduce your repayments. Which will be a huge relief - and can take away some of your stress.

I can help you with this. So please get in touch if you would like my assistance.

#2 Prepare for the shock

If you start budgeting for these higher repayments now, it will be much easier when the time comes. There are two ways to do this.

You could increase your repayments now. Either to the new repayment level or part-way. This not only gets you used to paying a higher repayment, it also means you will pay your loan down faster while you're still on your current interest rate. (Which can save you a lot of interest in the long run.)

Or you can start a savings plan. Where you automatically transfer additional funds to a savings account now. Meaning you build up a safety net as well as getting used to the cashflow impact.

The strategy that's best for you depends on your situation. So, please get in touch as I'll help you work out the best thing to do.

#3 Don't pay more interest than you have to!

Finally. You should definitely shop around for the best deal. As this can greatly reduce the pain you will feel from the higher rates.

Some banks are very hungry to get new customers right now. And will offer you a great deal.

While others are more interested in charging higher rates.

I know which bank I'd rather be with!

Again, I can help you with this. In particular I know the best rates that each bank will offer. I can also negotiate on your behalf with your current bank.

Do you want some advice on your mortgage?
As always – if you’d like to discuss your options for your current mortgage, or a new purchase, please get in touch.

Feel free to forward this to your friends and family too.

Till next time…
Tim

Do you know someone that is house hunting?

90% of my new clients are referred by my old clients – which I really appreciate!

So if you think I can help one of your friends, please put us in touch.

This newsletter is not intended as financial advice. Merely a commentary on the current market. Any predictions are just a personal opinion and not a guarantee. If you would like personalised financial advice please call me. My disclosure statement is available free and on request.