Martin Lewis from Money Saving Expert has shared advice for homeowners after the mortgage market fell into turmoil following the government's mini-budget.

Lending giants are hiking mortgage rates and withdrawing products following chancellor Kwasi Kwarteng's statement on Friday, September 23.

Markets have been spooked due to the government announcing the biggest tax cuts in half a century alongside increased borrowing to lower energy bills.

Overnight there has been a record drop in the choice of mortgage products, according to Moneyfacts.co.uk.

A number of banks have withdrawn products including Halifax, Virgin Money and Santander.

Should you switch your mortgage?

In his latest Money Saving Expert newsletter, Mr Lewis said the "unprecedented situation" has left it "extremely uncertain" as to what the best move is for people.

Variable or tracker rates

If you are on a variable or tracker rate and in a position to change to a new mortgage, the advice is to "check urgently to see if you can ditch, switch and save".

People should use a mortgage comparison tool to check the latest deals and compare them with their current rates.

If you do find a better deal, it is best to act quickly as the market is changing rapidly.

Savings can also be used to get a cheaper remortgage.

Fixed-rate mortgages

The finance pro says to make sure you know when your fixed rate is ending so you can act before it is too late.

Mr Lewis says: "If you're coming towards the end of your deal, act now. Some lenders let you lock in a rate six months in advance - and many more let you lock in three months ahead.

"If your fix ends before March 2023, check deals now, as rates are likely to rise further, and today's rates may soon disappear."

If your fixed rate isn't ending soon, the market is too uncertain right now to know the best course of action, as rates could rise or fall in the future.

Can you overpay your mortgage?

Most lenders will allow people in the middle of a fixed or variable rate to make mortgage overpayments.

Mr Lewis said: "Overpaying means you clear the mortgage quicker, which means you pay less interest in total - and savings can be huge.

"Plus as you'll owe less, you may be able to get a cheaper deal when you come to remortgage."

Would downsizing help?

The money expert suggests downsizing could be a good option to consider for some.

"With the huge rise in prices in many parts of the UK, and mortgages getting more expensive, it's worth thinking if you're in the position to downsize," he said.

"It's likely this will especially suit any empty-nesters whose kids are now independent adults - with big houses for few people."

What can you do if you are struggling to pay?

With the cost-of-living crisis impacting people's finances across the country, many homeowners will be struggling to meet mortgage repayments.

"Missed payments should be avoided as much as possible as it will have a serious impact on your ability to get credit in future," Mr Lewis said.

If you find you are struggling to pay there are a number of options available.

  • Change the terms of your mortgage - Agree with your lender to extend your mortgage term, so you have longer to pay off your debt, or switch to an interest-only mortgage to cut repayments. This will provide short-term relief but will increase costs in the long run.
  • Get help with repayments - People on certain benefits may be able to claim support, such as Universal Credit.
  • Get advice - Speak to organisations like Citizens Advice or National Debtline who will be able to offer support and advise on the best course of action to take