How to Survive Rising Interest Rates on Your Mortgage
Practical strategies to manage rising mortgage interest rates in the UK, from fixing your rate to budgeting for higher payments.
How to Survive Rising Interest Rates on Your Mortgage
When interest rates rise, homeowners on variable or tracker mortgages face higher monthly payments. Even those on fixed rates need to plan for when their deal ends. Here's how to protect yourself.
Know What You're On
- Fixed rate: Your payments are set until the fixed term ends — when it does, you'll revert to the SVR unless you remortgage.
- Tracker: Payments move directly with the Bank of England base rate — rises are immediate.
- Standard Variable Rate (SVR): The lender sets the rate, typically following base rate movements with some lag.
If You're on a Variable Rate
Consider fixing your rate now. Even if rates have already risen, locking in certainty protects you from further increases. Speak to a broker to assess whether fixing makes sense given current market expectations.
If Your Fixed Rate Is Ending Soon
Start looking six months before your deal ends. You can often secure a new rate in advance. Don't wait until you're automatically moved to the SVR.
Practical Measures
- Overpay while rates are lower if your mortgage allows it — this reduces your outstanding balance
- Review your budget and identify spending that can be reduced
- Speak to your lender if you're struggling — they're required to work with you
- Consider extending your mortgage term to reduce monthly payments (this increases total interest paid)
Free Help Available
The Money Helper service (moneyhelper.org.uk) offers free mortgage advice. If you're in difficulty, your lender must offer forbearance options before taking action.
