Approaching the end of the fixed term loans can cause distress, especially considering the historically low interest rates of 2020 and 2021 that will soon be a thing of the past. As the market interest rates rise, the interest cost can increase significantly, making it crucial to take proactive steps to safeguard your financial situation.
In this blog post, we will discuss practical strategies to help you navigate the expiration of your fixed term loans and ensure a stable financial future for you and your family.
1. Diarise and Take Immediate Action:
To avoid any unfavorable surprises, it is important to diarise the upcoming expiry dates of your fixed term loans and take swift action. Some of the lenders allow to secure new fixed terms within 60 days of the fixed term expiry date. Market conditions can impact the interest rate movement; therefore, it is important to act on the expiration of the fixed term rates sooner than later.
2. Evaluate Market Interest Rates:
It is essential to assess the interest rates prevailing in the market. Utilise a mortgage calculator to estimate your proposed repayments, enabling you to develop a robust budgeting plan. This step is particularly crucial in the current economic climate, where rising costs of everyday necessities can strain your finances. By calculating your potential repayments, you gain valuable insight into managing your financial situation e ectively.
3. Seek Professional Advice:
Consider engaging a financial adviser specializing in mortgages. A financial adviser can assist in calculating your repayments based on the remaining loan term and interest rate. Their expertise will ensure that you make informed decisions aligned with your financial goals.
4. Plan for the Future:
Take a moment to review your future aspirations for yourself and your family over the next 12 to 24 months. Life is unpredictable, and unexpected situations can arise. By having an action plan in place, you will be better prepared to tackle any challenges that come your way. This proactive approach will provide you with peace of mind and a sense of security for your financial well-being.
By adopting a pragmatic approach to managing your expiring fixed term loans, you can achieve financial security and peace of mind for yourself and your family. Having a plan of action not only protects your financial interests but also allows you to allocate more quality time with your loved ones, pursue personal goals, and enjoy a fulfilling life. Take control of your financial future today and reap the rewards tomorrow.
Disclaimer: The article should not replace or used as a substitute for personalised financial advice. It is recommended that you seek independent financial advice based upon your needs, goals and situation. SK Financial Group and their employees cannot be held accountable to the information in the article.