Interest rates

How will a rise in interest rates affect you?

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The threat of rising interest rates is enough to make any homeowner feel worried right now but there are things you can do to prepare. If you are worried about how you will cope, Shelter can help.

Our top tips for being prepared for a rates rise

• 1

  Talk to your lender

  They can help you in lots of ways if you are in difficulty and must treat you fairly. Options could include: reducing your monthly payments, or switching to an interest-only mortgage for a while.

• 2

  Get free advice

  From Shelter online, by phone or in person – find out about sources of free, independent advice. Try online Mortgage Help from Direct.gov.

• 3

  Find out about Government help

  See if any of the Government schemes can help you:

  • Government help for homeowners
  • Homeowners mortgage scheme
• 4

  Work out your incomings and outgoings

  This will help you understand what you can afford and get on top of your money worries - use Shelter’s budgeting downloads or you can download a budget planner from the Debt Advice Foundation or Money made clear to help you start.

• 5

  Act as soon as possible

  It’s never too late but there are more options available if you tackle the problem early on.

• 6

  Do not borrow more to manage in the short term

  Using credit cards to pay debt is just storing up problems for the long term. Get advice on how to manage your debts.