Cost of living

As has been covered extensively in the news recently, the cost of living is increasing, making everything a bit tougher for us all.

If you own a home and have a mortgage you have probably noticed that your monthly payments have increased fairly dramatically over the last year or so. This has been particularly impactful on people with variable rate mortgages or those whose fixed term deal has recently ended. We sympathise. Things are tough for a lot of people at the moment but do not despair, there are things you can do.

If you are struggling to keep up with mortgage payments, the single best thing you can do is speak to your mortgage company. Much as banks are demonised in the media, it is in nobody’s interest for you to fall behind on your payments. You will most likely find that your lender will work with you to ensure that your monthly payments are affordable. This can include actions like extending the term of your mortgage or temporarily switching to ‘interest only’ repayments. Of course you should carefully consider the long term impact of these, but they can be a helpful way of giving you some much needed breathing space.

Another option could be to take in a lodger. You have probably seen the coverage regarding the lack of available rental properties, so you could potentially help someone find accommodation as well as covering a portion of your mortgage payment. You can advertise your room on www.spareroom.co.uk or www.openrent.co.uk/ for free. Schemes are available such as the “Rent-a-Room” scheme, which provides you with a yearly tax-free allowance.

There may be other creative options you could try. Perhaps it’s time for a declutter and you could consider selling excess furniture or other items via ebay, Facebook Marketplace or Gumtree? Do you have a driveway you could rent out? Parking is a huge problem in some of the larger cities and there could be an opportunity to rent out your drive whilst you are out for the day. Perhaps you could even consider Airbnb for the shed or spare room (check with your mortgage lender first!)? Or even renting your home as a film set?

We appreciate times are difficult, and hopefully the above are a few helpful hints on how you can navigate the tricky times we are in.