3 helpful ways you can deal with rising mortgage rates

Mortgage rates can move quickly, and when they do, the impact on monthly payments can feel sudden—especially if you’re coming to the end of a fixed deal. If you’re worried about affordability, there are still sensible steps you can take.

This guide focuses on three practical ways borrowers often manage rising mortgage costs, particularly when a remortgage is on the horizon.

Why mortgage rates rise (and why it matters for your payments)

Mortgage pricing is linked to wider economic factors. When inflation is higher than expected, lenders may adjust mortgage rates to reflect their funding costs and the outlook for interest rates.

Even if you’re not changing your mortgage today, rate rises can affect:

• What deals are available when your current term ends
• How competitive “new” deals are compared with staying where you are
• Whether your lender’s standard variable rate (SVR) is more expensive than the market

Understanding this helps you plan rather than react—because the best time to act is usually before your current deal ends.

1) Find a new deal before your current one expires

If you’re on a fixed or tracker mortgage, the most common pressure point is expiry. When a deal ends, many borrowers are moved onto their lender’s SVR, which is often less competitive.

A proactive approach can include:

• Checking your end date and planning ahead for a remortgage
• Looking at options before you’re moved to SVR
• Comparing deals, including any “loyalty” offers from your current lender

It’s also worth remembering that lenders may allow you to apply for a new deal before the end of your current term. Acting early can give you more choice and reduce the risk of being pushed onto a higher rate.

2) Talk to your lender about alternatives to manage affordability

If your repayments have become harder to manage, it can be worth speaking to your lender about options that may reduce pressure in the short term.

Depending on your circumstances and the lender’s policies, alternatives can include:

Extending your mortgage term

Extending the term can reduce monthly payments because the balance is repaid over a longer period. The trade-off is that you may pay more interest overall.

Payment holidays (where available)

Some borrowers may be able to take a payment holiday or a temporary reduction in payments. However, interest may continue to accrue during the break, and your balance and future payments could be higher when the arrangement ends.

Switching from capital repayment to interest-only (in some cases)

In certain circumstances, lenders may allow a temporary or permanent switch to interest-only. This can reduce monthly outgoings, but it changes how the mortgage balance is repaid.

It’s important to consider the potential downsides, such as:

• You’ll still owe the original capital at the end of the interest-only period
• Your equity position may be affected, particularly if property values fall

Any arrangement should be considered carefully, because temporary relief can sometimes create longer-term repayment challenges.

3) Speak with a professional to explore the best options

When rates rise, the “right” solution depends on your mortgage structure, your timeline, and your affordability. A professional can help you understand the options available, including:

• Whether remortgaging now is likely to be beneficial compared with waiting
• How different deal types could affect your monthly payments and total cost
• Whether there are suitable alternatives with your current lender

Even if your deal doesn’t end immediately, it can still be useful to review your position—especially if you’re concerned that your next rate could strain your budget.

Key takeaways

• Plan ahead: If you’re nearing the end of a fixed or tracker deal, remortgaging before expiry can help you avoid an expensive SVR period.
• Ask about affordability options: Term extensions, payment holidays, or other arrangements may provide short-term breathing space, but they can have trade-offs.
• Get tailored support: Mortgage solutions are personal—professional guidance can help you choose the most practical route for your circumstances.

If you’re struggling to keep up with payments, it’s important to address the situation early. Your home may be at risk if you do not meet mortgage repayments.