The Cost of Living Crisis VS Your Mortgage

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On 21 September 2022, the Bank of England base rate increased to 2.25%. This is good news for those with savings accounts as it means their interest rates are also likely to increase, paying more interest on their money. For those with mortgages however, this news might not be so welcome.

The cost of living crisis is a topic that we hear a lot about when we’re visiting properties and providing valuations; and this rate change will likely adversely impact many in our communities. One area you can likely make a saving is on your mortgage.

As estate agents, it’s our duty of care to enquire in to our sellers financial situations and it never ceases to surprise us how many homeowners are unsure what mortgage product/interest rate they have. We’ve met many homeowners who have previously signed up to fixed-term mortgage deals and when the fixed-term has lapsed, they’ve forgotten all about revising their product and getting a better deal.

Does this sound like you?

We’re all very good at reviewing our insurances, broadband and tv packages, and mobile deals; but when it comes to our largest asset it seems we forget the importance of having our finances reviewed.

What is the Bank of England (BoE) base rate?

The Bank of England base rate is usually voted on by the MPC eight times a year.

If the MPC feels that the economy would benefit from higher borrowing and spending by businesses and consumers, it lowers the base rate.

On the other hand, if spending levels are increasing too quickly and inflation is in danger of soaring, the MPC may raise the base rate.

How will it affect my mortgage?

When a fixed-term mortgage deal ends, borrowers are moved to their lenders standard variable rate (SVR). If you’re on your lender’s SVR, then a rate increase could significantly bump up your costs. While your lender might not increase its SVR by the full amount, it’s still highly likely that your payments will increase.

With average SVRs above 5%, it’s important to remortgage to another deal before the end of your fixed term.

Now is the best time to review your products.

Be like Mr & Mrs S

We asked one of our highly recommended and respected Independent Mortgage Adviser’s from Your Mortgage Centre to provide us with an example of someone they’ve recently helped out of a standard variable rate mortgage.

“Mr & Mrs S had been paying their lenders standard variable rate for several years. Their mortgage had been affordable, so they had not considered the fact that fixing in to a new deal could save them money. They’ve received several letters from their current lender already this year stating that their mortgage payments were to increase following the Bank of England’s base rate rise, so contacted us to explore their options.

Their lenders standard variable rate had increased to 5.24% and they were concerned that this could keep increasing over time. They felt that in the current economic climate, having the certainty of knowing their mortgage payments over the next few years was most important to them. We managed to find them a fixed rate mortgage which has reduced their monthly mortgage payments by £133 a month and more importantly, provided them with the peace of mind that their mortgage payments will remain the same for the next 5 years.”

Be like Mr & Mrs S. Know what mortgage product you’re on and be sure to regularly have it reviewed by an Independent Adviser to ensure you’re not paying above the odds.

Whether you’re moving or simply re-mortgaging, Sims Williams have access to highly recommended independent mortgage advisers, who’s advice and service is totally free of charge. Contact us on 01243 551368 .

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What our clients say

Professional Throughout

A great big thanks to John and all the staff at your Bognor branch. From the first visit to the completion of the sale we were dealt with professionally and with understanding. Great staff and very efficient. We were given all the help we needed through the entire transaction.
Mrs Hetherington - Vendor - Aug 31st, 2022

Satisfied customer

Been letting our house through Sims Williams for nearly 8 years. We have had four tenants, and the service has been excellent under the supervision of Jo Mallet. The house has always been let very quickly between tenants who have always been thoroughly vetted, very stress free for us. Would recommend.
Margaret - Landlord - Jun 6th, 2023

Helpful, Efficient & Friendly

Thank you all so much for you all your help and support in selling 18 Green Lane for us, you’ve all been so helpful, quick to respond, friendly and well you sold it really quickly! I have already recommended you to a number of friends and will continue to do so, my parents bought from you over 20 years ago and you have continued to be fantastic.
Julia - Vendor - Jun 18th, 2021


Sims William and Emma in particular were always efficient and helpful throughout our purchase... can’t recommend them highly enough and will definitely use them next time we move...
Tricia - Buyer - Dec 16th, 2020

Would recommend!

We bought and sold properties through the Bognor Regis team and would certainly recommend them. We spoke with all the team - who were very nice - but dealt a lot with John, as neither transaction was straightforward - and he worked really hard to make things work out for us. He was very approachable and we never felt pressured to agree to anything we weren't happy with. It really felt as though he was on our journey with us and wanted the best for us. I would certainly recommend Sims Williams, Bognor Regis
Ms Brookes- Vendor - Aug 25th, 2022

Excellent service

Been dealing with you now for over 2 years and you always provide an excellent service both to the tenant and myself, the landlord.
Phillip - Landlord - Mar 6th, 2023


Richard was completely professional yet friendly and kept us informed every step of the way. Nothing was ever too much trouble and he made a protracted transaction far less stressful than it could have been. Thoroughly recommend him and the company.
Fay - Vendor - Dec 7th, 2021

Exceptional Service

Sims Williams provided an exceptional service throughout the purchase of our new home. Calum was extremely professional every step of the way, would highly recommend.
Guy & Teresa - Buyers - Dec 3rd, 2021


Really helpful and efficient. Nothing too much trouble. Excellent service. David Vawdrey is highly efficient and charming to deal with. thank you
Flora - Tenant - Jul 13th, 2020

I cannot fault Sims Williams and would recommend them in a heartbeat

The common conception of Estate Agents is that they take a few pictures, write a blurb, publish it, show prospective purchasers around a property, and charge you a fortune for the privilege. From the seller's point of view, that may be how it seems. However, after the sale has actually been agreed, the service provided to the purchaser more than justifies the cost. I’ve recently purchased a property through Sims Williams, and they did so much to help. Ambiguity surrounding a tree preservation order was quashed in a matter of minutes, thanks to them having much more up-to-date information than the council. My survey raised a potential concern about damp. Sims Williams provided a damp expert to go and visit the property and compile a report – again resolving this problem very quickly. Lastly, a purchase further up the chain was causing delays. Sims Williams were constantly checking in with me, assuring me that they were chasing and doing everything in their power to help this complete. Obviously, all of this came out of the fee that would have been paid by the seller, so was effectively free for me. Had I have gone back to my solicitor with all these queries, I dread to think how expensive that bill would have been. Through my experience, I cannot fault Sims Williams and would recommend them in a heartbeat.