This month our Wellbeing focus is Finance. Over the coming month we will be sharing resources and a range of ideas to help support your financial wellbeing. Financial wellbeing is more than just having enough money to pay your bills. It’s about having a sense of control over your finances, feeling secure about your future, and having the freedom to make choices that allow you to enjoy life.

This week’s topic is Mortgages.

The Bank of England’s base rate is currently at 5.25%, its highest level since 2008. This means that interest rates on mortgages are also rising, making it more expensive to borrow money.

The Bank of England increased the base rate to tackle rising inflation, which means you’ll likely see an increase in your monthly mortgage payments if you don’t have a fixed-rate or are coming to the end of one.

To find out how this will affect you and your mortgage check out this moneyhelper.org resource here.

You can also find out what help you can get if you can’t afford your mortgage – click here.

Some useful advice

The rising interest rates are a challenge for homeowners and borrowers, but there are steps you can take to protect yourself. By being prepared and making informed decisions, you can minimise the impact of the rising interest rates on your finances. 

If you are already on a mortgage, there are a few things you can do to manage your payments:

• Make extra payments. If you can afford to, make extra payments on your mortgage. This will help you pay off your mortgage sooner and save money on interest.
• Refinance your mortgage. If you have a variable rate mortgage and interest rates have fallen, you may be able to refinance your mortgage to a lower interest rate. This could save you money on your monthly payments.

If you are thinking about taking out a mortgage, it is important to be aware of the current interest rate environment. Here are some things to keep in mind:

• Mortgage rates are likely to remain high for the foreseeable future. The Bank of England has said that it expects to keep the base rate at its current level or higher until inflation falls back to its target of 2%. This means that mortgage rates are likely to remain high for the next few years.
• You may need to pay a higher deposit. Lenders are becoming more cautious about lending money, so you may need to pay a higher deposit to get a mortgage. This could mean saving for longer before you can buy a home.
• Your monthly payments may be higher. If you are on a variable rate mortgage, your monthly payments will go up if the base rate rises. If you are on a fixed rate mortgage, your payments will stay the same for the duration of your mortgage, but your interest rate will be higher than it would have been if you had taken out a mortgage when interest rates were lower.

In addition to the tips above, here are a few other things you can do to prepare for rising interest rates:

• Build up your savings. Having a healthy savings cushion will give you peace of mind if your monthly payments increase.
• Review your budget. Make sure you are still able to afford your mortgage payments even if interest rates rise.
• Get a financial advisor. A financial advisor can help you create a financial plan that is tailored to your individual needs.

By following these tips, you can prepare for rising interest rates and protect your financial wellbeing.

How to seek help

Cemex offers all employees a free, confidential employee assistance programme (EAP) called Lifestyle Support, operated by Care first. Lifestyle Support is easy to access, available 24/7 and can provide help and support with a wide range of issues, including those relating to debt.  It is run by a separate provider and isn’t part of Cemex – we don’t receive any employee specific information from them.

You can contact the Employee Assistance Line (Lifestyle Support) for confidential advice and support – call 0808 168 2143 or visit www.lifestyle-support.co.uk (Username: Cemex Password: cemex).