The Top 5 Financial Fears and Their Solutions

Portrait of happy young couple using laptop, man holding mobile phone, hugging dog, sitting together on comfortable sofa at home. Sorting out their mortgage.

Navigating the financial landscape can be daunting, especially when it comes to significant commitments like mortgages, dealing with interest rates, and managing deposits.

For many in the UK, these financial fears are a daily concern.

Here, we address the top five financial fears related to property purchasing and personal finance, offering practical solutions to help you manage and overcome them.


  1. Fear of High Mortgage Payments

The Fear: With property prices often reaching daunting heights, securing a mortgage that doesn’t break the bank each month is a common worry. The fear of high mortgage payments can deter many from taking that first step onto the property ladder.

The Solution: Start with a clear understanding of what you can realistically afford. Use online mortgage calculators to gauge what your payments might look like based on different interest rates and loan amounts. Consider speaking with a mortgage advisor who can provide insights into the best deals that fit your financial situation. Opting for a fixed-rate mortgage can also stabilise your payments, protecting you against interest rate increases for a period.


  1. Fear of Not Being Able to Afford the Deposit

The Fear: The deposit is often the biggest initial expense when buying a home. Saving enough to meet the typical 10-20% requirement can seem impossible, especially for first-time buyers and those with lower incomes.

The Solution: Look into schemes designed to help buyers with smaller deposits. For instance, one major lender has launched a new mortgage scheme for first-time buyers. With a deposit of just £5,000, you can now access a mortgage for homes valued up to £500,000. Government schemes can also help first-time buyers, such as the Lifetime ISA (LISA), allowing you to save up to £4,000 a year with the government adding 25% bonus to your savings, up to £1,000 annually (check here for specific regulations). Shared ownership schemes are another option, allowing you to purchase a portion of the home and pay rent on the remaining share, which can significantly reduce the deposit needed.


  1. Fear of Rising Interest Rates

The Fear: Interest rates can fluctuate, impacting mortgage payments and the overall cost of borrowing. The fear of rates rising after locking into a mortgage can be a significant stressor.

The Solution: Consider a fixed-rate mortgage for peace of mind. Fixed rates mean your interest rate and monthly repayments remain the same for a set period, regardless of market fluctuations. This can make budgeting easier and provide security against potential rate increases. Regularly review your mortgage deal, especially as the end of your fixed term approaches, to ensure you can switch to the most advantageous rate.


  1. Fear of Being Tied to a Bad Mortgage Deal

The Fear: Committing to a mortgage that isn’t competitive or that becomes burdensome if your financial situation changes is a common concern.

The Solution: Thoroughly research before agreeing to a mortgage. Consult with a mortgage advisor and use comparison sites to ensure you’re getting the best deal available. Look for mortgages that offer flexibility, such as the ability to overpay or take payment holidays. These features can provide valuable relief if your financial situation changes unexpectedly.


  1. Fear of Falling Property Values

The Fear: Investing in property is usually safe, but the possibility of falling property values can affect both your financial stability and the potential for future property transactions, including remortgaging or selling at a profit.

The Solution: While property markets can fluctuate, property generally appreciates over the long term. To safeguard against short-term drops, consider buying in well-established or up-and-coming areas known for long-term growth. Ensure your purchase is sustainable from a lifestyle perspective, meaning you’d be content to live there longer if necessary. Diversifying your investments can also mitigate the risk of any potential downturn in property values affecting your overall financial health.



While the fears surrounding mortgages, deposits, and interest rates are very real, there are numerous strategies and tools available to help manage and mitigate these concerns. By planning carefully, utilising available resources, and seeking professional advice, you can navigate the complexities of financial planning with confidence. This proactive approach not only addresses the immediate fears but also builds a foundation for long-term financial stability and peace of mind.


If you’d like help with an Agreement in Principle (AIP), your mortgage application or protection products available, contact one of our friendly advisors who would be happy to have a chat and help guide you through it all.

Leave a Reply

Your email address will not be published. Required fields are marked *