Mortgage borrowers urged not to panic
“What I would say is not to panic, you don’t need to panic you need to speak to your broker speak to your bank."
A mortgage broker has issued advice for homeowners to "not panic" but to get in touch with their advisor after a week of financial uncertainty.
Assumpta Breslin, a mortgage broker in Londonderry, said the current financial situation is “very unsettling” and that interest rates are “very volatile”, so people are naturally worried about increased rates.
It comes as some of the UK's biggest lenders pulled mortgage deals off the market over fears The Bank of England could raise interest rates even higher to save the pound following the mini budget on Friday, September 23.
The pound fell to record lows after Chancellor Kwasi Kwarteng announced extensive tax cuts funded by government borrowing.
Homeowners and first-time buyers are now worried that mortgage repayments could jump adding more financial strain to already struggling households because of the cost-of-living crisis.
“What I would say is not to panic you don’t need to panic you need to speak to your broker speak to your bank."
Assumpta, who has been in the mortgage business for more than a decade, said the first thing people should do is to contact their bank or mortgage broker:
She said: “At the minute the situation is very unsettling, and the rates are very volatile.
"People are naturally worried about rates and about rates going up.
“What I would say about the best thing to do as a starting point is go back to your broker who arranged a mortgage for you in the first place.
“What I would say is not to panic, you don’t need to panic you need to speak to your broker, speak to your bank."
As for first time buyers Assumpta said she thinks it is a time to "just stop" and wait to see what will happen in the coming weeks.
She added: “ Wait to see what happens over the next few weeks and months even and not to rush into buying anything just because the market seems to be pushing them to buy.
“It really is a time to just stop, and think is this the best time to buy because house prices do generally fluctuate, and they are higher than they normally are just at the minute.
“Obviously if you buy when the prices are high it’s more difficult then if you want to sell down the line to make a profit.
“Clients with bigger mortgages who are in fixed rates that are about to end are the most vulnerable at the minute because if your mortgage is relatively small, let’s say under £100,000, rates going up won’t impact you just as much as if you were a mortgage of £250,00 or beyond.
“See what The Bank of England is going to do next.
“See what your options are because sometimes the best thing to do is to do nothing.
“See how interest rates are going to pan out over the next few weeks and months and don’t do anything without speaking to your broker or bank.”
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