They are willing to downsize, take on lodgers, and even sell their homes
To deal with their rising monthly mortgage costs, homeowners are considering different solutions, such as downsizing or taking on lodgers, according to research from The Mortgage Lender (TML).
A survey of 2,000 UK adults has found that 45% of borrowers would consider paying an early repayment charge (ERC) on their mortgage deal in order to fix to a reduced rate.
Nearly a fifth, or 19% said they had cut back on spending in order to save for or pay increased mortgage costs, while 10% revealed they have taken on extra work in order to afford their mortgage costs.
Around 7% said they had taken in lodgers to bring in additional funds, while a further 10% stated they would do this in the future.
One in 10 admitted they would be downsizing, while some were thinking about selling completely and going back to renting for the time being.
But before making any decision, 27% said they would first seek financial advice, with 13% revealing that they had already spoken to a mortgage broker to find the best possible deal.
Previous research from TML found half of homeowners with a fixed, tracker, or discount mortgage were on deals that need to be renewed within the next two years. A quarter of those who were expecting their mortgage costs to go up believed it would increase by an average extra cost of £441 a month.
“It can’t be denied that the cost-of-living and rising costs are biting, so it’s not surprising that borrowers are looking for ways to save their money,” commented Steve Griffiths (pictured), head of sales at The Mortgage Lender.
“What’s vital is that they seek advice from a professional before making any changes. Encouragingly, we are seeing many people speaking to their brokers or planning to do so. Brokers play a pivotal role in supporting consumers make one of the biggest financial decisions in their lives and can help navigate the market to find the best possible deals that suit individual circumstances and factor in true costs.”
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