Mortgages and the Cost of Living Crisis

Are you worried about getting or affording a mortgage during the cost of living crisis? Getting professional, unbiased mortgage advice can be key to getting the best deal

About Mansfield Mortgages

With a great team around us, we make sure that every customer is at the centre of all we do. We have a combined experience of 63 years in the mortgage and finance industry. With modern practices we work with customers all over the country, word of mouth travels far and wide!

first time buyer mortgages mortgages remortgages mortgage cost increase living afford lender living crisis

Are you worried about getting or affording a mortgage during the cost of living crisis? Getting professional, unbiased mortgage advice can be key to getting the best deal

About Mansfield Mortgages

first time buyer mortgages mortgages remortgages mortgage cost increase living afford lender living crisis

Mortgages during the cost of 
living crisis
What is the 
cost of 
living 
crisis?
The cost of living in the UK in 2022 is rising dramatically! Rising 
inflation and proposed tax increases will hit consumers budgets. With 
costs increasing and wages not matching this will cause problems for 
many people.
Significant rises in the cost of living are also important to first time 
home buyers and those looking to move or remortgage, as it will
mean changes to their ability to afford a mortgage.
In some cases your mortgage payments may not have risen a lot, 
but combined with the other cost of living increases and lack of 
wage increases this can put a strain on finances.
What is an 
affordability 
assessment
Whenever you apply for a mortgage an affordability assessment is 
completed by the lender, this is a series of checks that the mortgage
lender carries our to ensure that you can afford the mortgage you 
intend to take out.
Lenders are tightening their lending criteria to reflect increasing
costs, which has result in a reduction in the number of loans on 
offer.
What does 
this mean 
for my 
application?
When a lender assess a buyers income they will need to confirm 
that the borrower’s income exceeds their outgoings. With high 
inflation and tax rises, this means that borrowers will be able to 
afford less, which will affect the amount they can borrow.
If you can increase your deposit will help to lower the amount 
borrowed and your monthly costs. If you are a first time buyer you
may be able to boost your deposit with the Help To Buy Scheme but 
this is due to be phased soon. For others it means finding other 
ways of trying to boost your deposit, possibly with the help of 
parents.
Remortgaging?
If you already have a mortgage you may wish to consider taking 
advice on whether a remortgage will help you save move and give 
you the reassurance of a fixed rate in these uncertain times.
If the new monthly costs are increasing beyond your means you 
could consider extending your mortgage term, or switching to an 
interest only loan, however you should discuss these with your 
advisor to understand the long term implications.
Houseing
Market
The impact of the cost-of-living crises will more than likely see 
reduced activity in the housing market as people delay making 
spending decisions.
Less disposable income also means that it will take longer for first 
time buyers to save for their deposits.
Do I need a 
broker / 
advisor?
In the current climate mortgage lenders are constantly changing 
rates and products, with some products only lasting a few days. So it
makes getting good quality, unbiased, professional mortgage advice 
key to getting the best deal.
If you are coming to the end of your mortgage deal, ideally you 
should start looking around three months before the term ends.
What happens 
if my 
circumstances 
change
If you circumstances change your mortgage broker is there to review 
your options, you can always get in touch with them if you plan to 
move or need to re-mortgage. 
Your broker will also get in touch in advance of a mortgage deal 
ending to review your circumstances and see if they can arrange a 
better deal for you.