Our £550 a month mortgage is ending in less than a year – our costs could double ...Middle East

They are currently paying £550 a month, but they expect that when their five-year fixed deal ends next June, they could end up paying double that – especially if they end up moving to a bigger home, as they are considering doing.

The couple ended up paying around £150 less per month than they did when renting and described the buying process as “seamless”.

But with her mortgage set to shoot up in price, she says the advantage that she has as a homeowner, compared to if she was a renter, is smaller.

“One of the benefits of getting a mortgage was that it was cheap compared to renting and your monthly payments used to be so much less than renting,” she says.

“I think we’re just going to have to reassess how much we save and what we spend when the mortgage renews. We go out quite a lot and go on holiday, and might have to cut some of that back,” she says.

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The cheapest deals on the market are now below 4 per cent, and average rates are around 5 per cent.

“I’m so glad we went for that five-year rate in 2021. We did so because we knew rates were so low,” says Gaby.

Several major mortgage lenders have reduced rates in the past few weeks – with some deals below 4 per cent – and experts generally say the trend could continue if the Bank continues to cut interest rates, which have a bearing on mortgage pricing.

But Ms Sheerin and Joe are not relying on this, and have already started laying the foundations for their renewal next year.

The couple may go on to a variable deal, which tends to rise and fall with interest rates, especially as they are trying to move, but ideally say they want to avoid this as they tend to be more expensive.

They are getting their home valued in September, ahead of a potential sale, so they can be as prepared as possible come next summer, when the jump in costs would kick in.

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