Mortgage holders are feeling the effects of global upheaval: What can employers do?
Global conflict rarely impacts mortgages directly butthe economic ripple effects are powerful.
Mortgage rates are driven by future expectations, not just what’s happening today. There are many nuanced mechanisms at play now - including disruption to energy markets pushing up costs, which in turn fuels inflation, which keeps interest rates higher for longer.
At the same time, financial markets react quickly to uncertainty, driving volatility in mortgage pricing, while lenders may become more cautious in how much they’re willing to lend.
The result is a mortgage market shaped as much by global risk as by domestic policy – creating higher costs, less certainty and more complexity for borrowers.
1. Impact on existing homeowners who need to remortgage
Rates are higher now, but nobody can say with confidence where they will go next. A sensible strategy is to secure a new mortgage offer at today’s rates well in advance. A mortgage offer does not commit you to proceed and typically lasts around six months, meaning that closer to your current deal ending, you can review the market again to see if better options have become available.
If you delay and rates rise before your remortgage, you risk losing out. Securing a deal early is a no-cost way to protect against this uncertainty – something we cover in our free financial education around remortgage strategies.
While this approach provides a degree of rate certainty, current rates remain higher than in recent years. Borrowers coming off very low fixed rates may therefore experience payment shock. Understanding early what your future payments are likely to be gives you valuable time to prepare – whether that’s adjusting spending habits, improving budgeting, or building financial resilience.
Some may choose to extend their mortgage term to reduce monthly payments, while others may prioritise reducing the overall cost of borrowing by keeping a shorter term. These are important considerations during the remortgage process, and it pays to understand the options and plan ahead.
When finances are already tight, a prolonged illness can quickly lead to serious pressure on mortgage payments. Where possible, enhancing employer sick pay can provide valuable reassurance and stability.
Another way to strengthen financial resilience is through group income protection.
If budgets don’t allow for these benefits, employers can still make a meaningful difference by offering financial education – helping employees understand both the risks and the range of private income protection options available to them.
How HR teams can help:
- Provide financial education on remortgaging strategies so employees can act early
- Offer access to regulated mortgage advice to support decision-making
- Support budgeting education to build financial resilience ahead of payment changes
- Enhance employee benefits such as sick pay or group income protection where possible
- Signpost education on personal income protection options
2. First-time buyers trying to get on the ladder
If uncertainty persists, lenders may become more cautious. This could include reducing maximum loan-to-value ratios, applying stricter affordability assessments, and tightening lending criteria more broadly.
While this isn’t a significant issue today, it has happened in the past and could easily happen again. With buyers already facing reduced purchasing power due to higher interest rates, these changes can make it even more difficult to get onto the property ladder.
These factors are outside an individual’s control – but they can be prepared for. Strong financial preparation is key to being in the best possible position to buy. This includes building a solid credit profile, saving consistently for a deposit, making informed financial decisions, and understanding both the buying process and the full costs involved. These are all things that can be taught.
How HR teams can help:
- Deliver first-time buyer education webinars
- Provide financial education on budgeting and saving
- Access to mortgage advice to explore options and affordability before beginning property search – possibly adjusting expectations on budget, location, property type
3. The market timers
“I won’t buy a house now because I think prices will fall…”
In times like these many would-be buyers fall into the ‘market timer’ mindset – holding off with the belief that prices are about to fall and that waiting will lead to a better deal. While it sounds sensible on the surface, the reality is that timing the property market is extremely difficult, the cost of being wrong is high, and personal circumstances matter more than market precision anyway.
By sitting on the sidelines, buyers risk missing opportunities, facing rising rents, or being caught out by changes in interest rates or lending criteria.
They might need help to quantify the real cost of delay: rent paid during the waiting period; potential for mortgage rate increases whilst waiting; lost equity built up through making mortgage repayments instead of rent. This and other discussions can upgrade their decision-making framework so they move from guessing the market to controlling their outcome.
Home buying should not be a short-term trade but a key life decision: is now the right time in your life to buy a home? In many cases, the confidence to buy comes from a better understanding of the bigger picture.
How HR teams can help:
- Provide access to qualified mortgage advisers to support decision-making
- Education for first-time buyers
Conclusion
Global conflict may feel distant, but its effects are being felt much closer to home – particularly in the cost and complexity of housing decisions. For employees, uncertainty around mortgages can quickly become a source of financial stress, impacting wellbeing, focus, and long-term security.
For HR teams, this presents a clear opportunity to add meaningful value: by equipping employees with the knowledge, guidance, and access to advice they need to make confident decisions. In an environment where the market is difficult to predict, the most effective support isn’t about forecasting the future – it’s about helping people take control of what they can, and plan with confidence.
Supplied by REBA Associate Member, Radcliffe & Newlands
Providing Mortgage Advice and free financial education to employees for over 25 years
