Mortgage rates are spiking - how bad will it get?
by
Get the full episode insights!
Enter your email below to get notified about more insights from:
This is Money Podcast
This episode is titled:
Mortgage rates are spiking - how bad will it get?
Notable Quotes
"The important thing is to not panic."
"If for the sake of a five minute search online, you can fix your bills at around about the level they are now or the price cap is going to be in April then and do it for 12 months, then I think that probably could see through most of the early difficulties."
Get episode summaries just like this for all your favourite podcasts in your inbox every day!
Get More InsightsEpisode Summary
In this episode of This is Money Podcast, host Georgie Frost and guests Simon Lambert and Helen Crane delve into the ongoing surge in UK mortgage rates and the ramifications for over a million homeowners facing remortgage situations this year. The panel discusses the rapid disappearance of competitive mortgage deals, with rates being adjusted daily amid market volatility caused by inflation expectations and geopolitical tensions such as conflict in Iran. They emphasize the importance of taking proactive measures when approaching remortgaging, including working with mortgage brokers, assessing one’s financial situation, and considering locking in rates early, despite the rising costs.
The conversation then shifts to the energy market, where Simon shares his experience of fixing his energy bills. He encourages listeners to consider similar fixes to hedge against anticipated price increases, noting the ease of switching energy providers. Helen supports this sentiment, mentioning her own successful energy switch and highlighting how simple it is to navigate these changes with comparison services.
The episode also addresses common pension mistakes, underlining the significant cost of opting out of workplace pensions and delaying contributions, which can lead to substantial losses at retirement. Helen outlines the importance of actively managing pension investments to ensure they are appropriately aligned with personal risk levels, especially regarding the default funds that many employees unknowingly remain in. Finally, they touch on Nationwide’s fairer share payments for customers, encouraging listeners to verify their eligibility ahead of the expected payout in June 2026.
The conversation then shifts to the energy market, where Simon shares his experience of fixing his energy bills. He encourages listeners to consider similar fixes to hedge against anticipated price increases, noting the ease of switching energy providers. Helen supports this sentiment, mentioning her own successful energy switch and highlighting how simple it is to navigate these changes with comparison services.
The episode also addresses common pension mistakes, underlining the significant cost of opting out of workplace pensions and delaying contributions, which can lead to substantial losses at retirement. Helen outlines the importance of actively managing pension investments to ensure they are appropriately aligned with personal risk levels, especially regarding the default funds that many employees unknowingly remain in. Finally, they touch on Nationwide’s fairer share payments for customers, encouraging listeners to verify their eligibility ahead of the expected payout in June 2026.
Key Takeaways
- Mortgage rates in the UK are rising rapidly, and consumers should not panic but take proactive steps to secure the best deal.
- It's advisable to fix energy bills now as a hedge against further price hikes amidst ongoing market turbulence.
- Common pension mistakes to avoid include opting out of workplace pensions and delaying saving, which can significantly affect retirement wealth.
Found an issue with this summary?
Log in to Report Issue