Homeowners consider downsizing to tackle rising mortgage costs - claim

Homeowners are starting to consider solutions to deal with their rising monthly mortgage costs including downsizing, research claims.

A survey of more than 2,000 adults by finance firm The Mortgage Lender found that 10% admitted they will be downsizing in order to reduce costs and 20% said they are thinking about it. 

A quarter are even thinking about selling completely and going back to renting for the time being, sheltering them from increasing mortgage repayments as interest rates rise.

The poll also found that 45% of borrowers either have or are considering paying an early repayment charge (ERC) on their mortgage deal to fix to a reduced rate.

Of this, 7% of borrowers said they have already paid an ERC to get a fixed mortgage deal to mitigate a rise in mortgage costs, 13% will do this, while a further 25% said they are considering it.

A fifth said they are already cutting back on spending in order to save for or pay increased costs. A further 27% said they will do this and 30% are considering doing so.
Others are looking into options to boost their income to afford rising costs such as finding extra work or taking in lodgers.

Steve Griffiths, head of sales at The Mortgage Lender, said: “It can’t be denied that the cost of living and rising costs are starting to bite, so it’s not surprising that borrowers are looking for ways to save their money. 

“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.”