Are you worried about your Mortgage?
As more and more people reach the end of their fixed rate terms, there is a real concern about another looming crisis. But there is always hope.
The ‘cost of living crisis’ has affected pretty much everyone, but in lots of different ways. We’ve all noticed the price of certain goods at the supermarket rising and we’ve had a tough winter of high fuel bills. Many people have had to face, for the first time, the difficult decision about what to go without during this time. And sadly often this choice is between heating and eating.
Between August 2022 and April 2023 we saw food bank usage in Lincoln rise from an average of around 145 households per week to a staggering 225. Many people were using a food bank for the first time as they found themselves short of money for the essentials.
I’d not usually have to come to a place like this, but our mortgage has gone up by £500 a month.
Lincoln Community Grocery member
- Recent data from the Office for National Statistics shows that food and catering prices rose on average 17.3% in the 12 months to April 2023.
- Fuel bills are 27% higher than the summer 2022 price cap.
- And the average cost of mortgage repayments has increased by 61 per cent in a year to £1,262 a month.
Finding several hundred extra pounds per month can feel like an impossible task for some households, especially as it’s estimated that a quarter of brits have no savings at all.
What to do if you are worried about your mortgage
If you are concerned about the increase in your mortgage, there are a few things that you can do to be proactive. Here are our top five tips:
- Take a deep breath! Remember, many homeowners have faced mortgage worries and come out stronger. You’re not alone in this journey.
- Reach out to your lender. They might have options to ease your burden, like refinancing or modifying your loan terms. Communication is key, so don’t hesitate to discuss your concerns.
- Get proactive about budgeting. Look for areas where you can trim expenses and save more. Small changes can add up, and every pound saved brings you closer to mortgage stability. Acts Trust runs a Money Coaching course as part of our Restore Programme and runs the Lincoln Community Grocery which is helping Lincoln shoppers save lots of money each week.
- Seek guidance from a financial advisor. These experts can offer personalised advice and help you navigate the mortgage maze. They’ll work with you to develop a plan and offer resources to overcome your worries. Remember, brighter days are ahead! If debt has become a serious concern, there is always hope and a solution! Speak to an organisation like CAP for free debt advice.
- Surround yourself with a support network. Share your concerns with loved ones and seek their encouragement. Sometimes, talking it out and receiving emotional support can alleviate the weight of mortgage worries. Remember, together we’re stronger, and a little bit of positivity goes a long way in facing challenges head-on.
The main thing is to remember you’re not alone there is always hope.
If you would like support from Acts Trust please reach out here.
Or if you’d like to support the work we do, we’d love to hear from you.
Written by Simon Hawking, 17th July 2023
