What would happen to your mortgage payment if your lender’s interest rates increased today?

Understanding how changes in interest rates affect mortgage payments is essential for clients to feel in control and make informed decisions. This guide will help you improve how you explain this topic, especially for clients on fixed-rate versus variable-rate mortgages.

Clients often default to general assumptions about mortgages. The first step is to bring the conversation back to their product.

Try saying something like:
"Let’s look at your current mortgage deal. You’re on a [2-year fixed/standard variable rate], which affects how much your payments can change when interest rates move. Shall I explain how that works?"

Why it works:
When clients understand their exact deal type, they’re more likely to give confident, correct responses. For example:

• If on a fixed-rate: “My monthly payment wouldn’t change until the end of my fixed rate term.”

• If on a variable rate: “My monthly payment would increase.”

Many clients struggle to connect abstract changes in interest rates to real-life consequences. So use the language in the question—“if your lender’s interest rates increased today”—to frame a relatable example.

Try saying something like:
"If interest rates went up by 1% today, your monthly payment would [stay the same/change] because of the type of mortgage you're on. Want to see how that might look in pounds and pence?"

Why it works:
It moves the conversation from theory to something more personal and practical, helping clients give more accurate responses.

Clients who choose “Not sure” may be disengaged or overwhelmed by mortgage jargon. Reassure them it’s common not to know, and then walk through a simple, visual breakdown of how interest changes affect different mortgage types.

Try saying something like:
"A lot of people aren’t sure about this, so don’t worry. Let me show you a quick comparison between a fixed-rate and a variable-rate mortgage, so you can see what happens when interest rates rise."

Why it works:
Visual comparisons (even just on paper) can unlock understanding and make clients feel more empowered.

The goal is to guide clients toward the right answer for their situation, using:

• Clear references to their mortgage type

• Real-world "what if" scenarios

• Simple, reassuring language and visual aids