UK MORTGAGE CENTRE
What to do if you’re struggling with mortgage affordability
August 21, 2023
Whether you’re struggling to afford your current mortgage or looking to boost your affordability
ahead of getting a new one – there are a number of things you can do to help your cause.
- Talk to your lender or broker regarding affordability.
- Take another look at your budgeting.
- Consider remortgaging.
- Look at your credit score.
- Register to vote.
- Talk to an expert – like us!
If you’re struggling with mortgage affordability – don’t worry. You’re not the only one.
This blog will cover everything you need to know about making your mortgage easier to afford. We’ll discuss stretching your affordability, budgeting, speaking to your lender and who to approach for help.
What Are Your Options?
Even for those who already have a mortgage, managing the payments can sometimes become a challenging task. If you find yourself struggling with repayment difficulties, remember that you’re not alone on this journey.
Navigating mortgage payments isn’t a one-size-fits-all task; it’s a path that can be tailored to suit your circumstances. There are strategies available to help alleviate the burden and restore financial stability.
Let’s look at your options.
What To Do If You Can’t Afford Your Existing Mortgage:
Talk to your lender
By talking to your lender and discussing your current circumstances it could provide the most straightforward fix in the quickest time frame. However we would always recommend speaking to an adviser about the solution provided.
Talk To A Broker
A broker can relook at your financial situation and analyse your budget and advise on the best way to move forward. Brokers are able to review 100s of lenders and may be able to find another solution over your current lender.
By reviewing your budget, you may be able to find areas within your spending habits to reduce your outgoings. Be double checking your direct debts you may uncover something that you can cancel or notice you’re over paying for something that your can get cheaper elsewhere.
This move could lead to payments that are easier on your wallet, which is especially great if you’re currently under a variable rate agreement. You also have the opportunity to extend your mortgage term, depending on your age and other factors in the mix. This avenue can be explored either with your existing lender or when you opt for a remortgage with a new provider. This may bring the monthly repayments down, although you will be paying your mortgage off for a longer period of time.
What Are Your Options If You Can’t Afford A Mortgage For The First Time:
How to boost your affordability.
Speak To A Broker
Getting support from a skilled advisor means they’ll dive into your complete financial picture, understanding your income sources. They’ll then show you the best way to set up your application. Once your plan is all set, an expert broker will explore every option out there to match you up with the most suitable mortgage deal for you.
Having a substantial deposit is definitely a positive factor for your mortgage application. Boosting the size of your deposit can lead to a reduction in the amount you have to borrow, which in turn lowers your monthly repayments. This is a win-win for lenders, particularly if you’re on a modest income, as it enhances the affordability of your mortgage.
- Credit score – Having a good credit score can only work in your favour, this is one of the main factors lenders look at when deciding if you can be reliable and repay your loan. Make sure you pay off any credit card debts, and correct any errors on your score where you can before you apply.
- Register to vote – Lenders find electoral roll data to be super helpful in their identity checks. It’s like a trusty tool they use to make sure you’re really you, living right where you say you are. Plus, it’s part of their way to keep an eye out for any funny business like money laundering. So, when you’re applying for a mortgage, that electoral roll info comes in handy to give them that extra boost of confidence about your identity and location.
Contact An Expert For Help:
If you’re ever in any doubt about affording your current or potential mortgage then it’s worth speaking to an expert mortgage adviser who can help guide you through the process and help find a solution for you.
At UK Mortgage Centre we provide straightforward mortgage advice that’s easy to understand and with the aim of saving you money.
*UK Mortgage Centre is a Trading Style of The UK Mortgage Centre Group. The UK Mortgage Centre Group is authorised and regulated by the Financial Conduct Authority – FRN 826982. Registered in England & Wales: 11614569.
**As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
***You may be charged a fee, starting from £345, for our advice given. Your dedicated advisor will discuss this further on your free initial phone call.