Mortgage rates have moved up quickly in recent weeks, and it’s starting to show in the numbers. New data suggests a typical borrower is now paying around £788 more per year . The figures, compiled by Moneyfacts, are based on a £250,000 mortgage over 25 years , with the average two-year fixed rate now at 5.28% . What’s changed The shift has been fairly rapid. Since late February, lenders have been reacting to increased global uncertainty by adjusting rates and pulling back some of their most competitive deals. Only a few weeks ago, fixed-rate mortgages below 4% were widely available . Those have now largely disappeared. Several major lenders, including Barclays, HSBC, NatWest, Nationwide and Santander, have withdrawn those lower-rate products altogether. How far rates have moved Average mortgage rates have climbed in a short space of time: Two-year fixed rates have risen from 4.83% at the start of March to 5.28% Five-year fixed rates have increased from 4.95% to 5.32% For someone taking a five-year deal, that increase works out at around £651 more per year compared with just a couple of weeks ago. Fewer options available It’s not just about higher rates — there are also fewer choices. There are currently 689 fewer mortgage products available than earlier in the month, which reduces flexibility for both buyers and those looking to remortgage. That said, the situation is still less severe than what we saw after the September 2022 mini-Budget , when roughly a quarter of all mortgage deals were withdrawn. What this means for borrowers If you’re already on a fixed-rate mortgage, nothing changes immediately. You’re protected until your current deal ends. The pressure tends to come when you’re approaching renewal. With rates moving quickly and lenders adjusting their products in response to wider economic conditions, timing and planning start to matter more. If you’re due to remortgage in the next 6–12 months, it’s worth looking at your options earlier rather than later. A practical approach Mortgage rates are influenced by factors outside anyone’s control, global events, inflation expectations and decisions by the Bank of England . What you can control is preparation. Understanding what your payments might look like at different rates, and how that fits alongside your wider finances, makes it easier to plan and avoid surprises. Final thought The key takeaway is that the mortgage market can move quickly, even over a matter of weeks. If you’re approaching a renewal or considering borrowing, it’s worth taking a bit of time to understand where you stand rather than relying on assumptions based on older rates. If you’d like help looking at how this might affect your overall finances, feel free to get in touch.

Where profit quietly disappears in growing Ltd companies Turnover is up. Sales look healthy. The business feels busy. But profit doesn’t quite reflect the effort. This is a common pattern in growing owner-managed companies. Nothing dramatic has gone wrong. There’s no obvious issue. But margins feel tighter than they should. Profit rarely disappears in one place In most cases, profit doesn’t drop because of a single event. It leaks. And those leaks are often easy to miss when the business is growing. Where it tends to go There are a few patterns that come up regularly: Overheads creeping up quietly Software subscriptions, small hires, additional services — each one makes sense individually. Over time, they permanently increase the cost base. Pricing that hasn’t kept up with complexity As the business grows, the work often becomes more demanding. If pricing doesn’t move with it, margins reduce. Revenue growth masking inefficiency When sales are increasing, inefficiencies are easy to ignore. When growth slows, they become much more visible. Small write-offs or slow-moving work Nothing dramatic — just gradual erosion over time. Director drawings without forward visibility Not wrong, but if they aren’t planned alongside cashflow, they can create pressure later. None of these are signs of failure. They’re usually just signs of a business that has grown without regular commercial review. What growing businesses usually need At this stage, most businesses don’t need major change. They need better visibility. Typically, that means: A clear view of gross margin Tracking overhead trends over time Regular cashflow forecasting Stepping back quarterly to review what the numbers are actually saying The changes themselves are often small. But making them early is far easier than correcting things later. Looking beneath the surface If profit feels tighter than turnover suggests, it’s usually worth looking a bit deeper. Not to find problems, but to understand what’s actually happening underneath the surface. Because in most cases, the issue isn’t dramatic. It’s just been building quietly. Part of a bigger picture This is the third post in a short series on how growing businesses interact with their numbers. If you haven’t read the earlier ones, you may also find these useful: The Signs You’ve Outgrown Your Accountant If Your Management Accounts Don’t Change Decisions, They’re Not Working Together, they look at how financial information should evolve as a business grows, and how small changes in visibility can lead to better decisions. If any of this sounds familiar, I’m always happy to have a straightforward conversation about how your numbers are behaving and whether they’re giving you the visibility you need.