Even outside of times when food and energy costs are perilously high, the task of making all your mortgage payments on time may not leave you with a great amount of other money to spend each month. And of course, you won’t want to risk falling behind with your payments, given how quickly debt can accumulate, and the associated prospect of losing your home altogether.
So, how can you help reduce the burden of your mortgage payments at this challenging time? Here are a few strategies that can enable you to better manage the situation.
Overpay on your mortgage payments when you have the chance
While interest rates have been on the climb lately - thereby making this tip trickier to put into practice - it remains a potentially wise course of action to make overpayments on your mortgage whenever you can.
Paying more now will lower the amount you have left to pay if future energy price rises, for example, are as dramatic as they have been predicted to be in many quarters.
See if you can switch to a cheaper mortgage
It might be possible to find a more affordable mortgage deal with an alternative lender - but bear in mind that you may need to pay charges to make the switch.
If you’re considering seeking out a cheaper deal, it is also a good idea to do this before there is any risk of falling behind with the payments on your current mortgage. This is because if you do have any debt with your existing lender, you will still need to repay it if you move.
Arrange to pay back your mortgage over a longer period
Presuming your mortgage isn’t an interest-only one, increasing the term of your mortgage could be an option for reducing how much you have to pay each month.
Taking this route would, though, force you to pay a greater amount of interest in the long term. Still, there’s always the option of overpaying from time to time whenever your circumstances allow, and it might be that you only need to spend a few months paying less until your situation allows you to go back to paying the previous monthly amount.
Take out a suitable mortgage protection insurance policy
Purchasing mortgage protection insurance won’t - of course - reduce your existing mortgage payments. However, it can help provide a layer of protection if you are keeping pace with your mortgage payments right now, but are fearful that future illness or injury would render you unable to work.
The way this type of insurance works is that if you do suffer from a long-term sickness or disability preventing you from working, a sum of money will be paid each month to allow you to keep on paying the mortgage. Some of this money might also be put towards other household expenses that you may otherwise struggle to pay in the event of not being able to work.
As you can see from the above advice, ensuring that you can continue paying your mortgage during the cost-of-living crisis isn’t necessarily just about reducing your payments now, if that is needed; it’s also about putting in place the right support for any future struggles.
Call our free and no-obligation advice line now on 0800 316 6917, and we can help ensure you only purchase mortgage protection insurance - or any other form of protection cover - that is well-matched to your practical and budgetary needs alike.