Are you worried about your fixed-rate mortgage deal ending?

Nearly two million people with a fixed-rate mortgage will see their deals end between now and the end of the year - and for many, that will feel like a financial timebomb.

After all, the conflict in Iran is having a huge knock-on effect elsewhere, with mortgage rates going up, deals being pulled, and the chances of an interest rate cut looking further away.

With that in mind, the government has been meeting with major banks and building societies to see what can be done to ease the impact of the crisis on homeowners.

Lenders will contact people whose deal is about to expire

During the meeting, lenders committed to proactively contacting people whose fixed-rate deals end between now and the end of the year.

So if you’re in this position, they’ll get in touch with you, rather than the other way round.

And they’ll set out what options are open to you and how you can access bespoke support well before your deal expires.

Mortgage arrears remain low for now

Lenders have seen more customers getting in touch for guidance in the last few weeks.

However, industry data shows that lending activity is holding up and the number of people falling behind with payments remains low.

Nevertheless, this new commitment from the sector will be welcome news for those who are worried about what will happen when their current deal expires, especially as some may already be in a precarious financial position.

In fact, of the people with mortgages who we support, nearly four in ten (39%) have debts of at least £30,000.

Help will continue through the mortgage charter

Anyone who is worried will also be able to access the mortgage charter options quickly.

This means customers will be able to book a new rate up to six months in advance and switch to a new deal with their existing lender without a fresh affordability check.

It also means people will be able to get temporary breathing space if they need it, such as moving to interest-only payments for six months.

And crucially, asking for help won’t affect a person’s credit score.

“In uncertain times, people need clear reassurance and practical help,” said chancellor Rachel Reeves.

“That’s why I’ve brought the biggest lenders together to step up support.”

What you can do if your mortgage is ending soon

If your fixed deal is ending soon, there are steps you can take to stay in control, even if your payments are likely to go up.

Review your current mortgage deal

Start by checking:

• when your fixed rate ends
• what your current interest rate is
• what your new monthly payments might be on a higher rate

This gives you a clearer idea of what to expect and how long you’ve got until your payments go up.

Speak to your lender

If you’re worried about affording higher payments, don’t wait until your deal ends.

Instead, get in touch with your lender as soon as you can.

They might be able to help by:

• extending your mortgage term to reduce monthly payments
• offering an interest-only option
• helping you switch to a more suitable deal

See if you qualify for extra support

If your income is low or you’re claiming benefits, you might be eligible for the government’s support for mortgage interest (SMI) loan.

It’s paid as a loan, which you’ll need to repay with interest when you sell or transfer ownership of your home. 

You may be able to transfer the loan if you’re buying a new home.

You might also be able to get help with:

• energy bills
• council tax
• other cost-of-living support

Take control of your budget

When things are tight, getting on top of your budget can make a big difference. 

Use our free budget planner to see where your money’s going and work out where you can make savings.