Homeowners consider downsizing to help with rising mortgage costs

Homeowners are considering downsizing, taking in lodgers or doing extra work to combat rising mortgage costs.
According to a survey by The Mortgage Lender (TML), 10% of homeowners have taken on extra work, and 18% were planning to do so.
Downsizing or selling is a consideration for 20% of those questioned who said they were thinking about it and 10% saying they would definitely be doing so to reduce costs. A further 24% said they would sell up completely and go back to renting.
The finance firm’s survey of 2,000 people, also found 13% have spoken to their mortgage broker to get a good deal and 45% either have or are considering paying an early repayment charge on their mortgage deal to fix to a reduced rate.
Elsewhere, 7% said they had already paid an early repayment charge and a fifth said they were already cutting back on spending and a further 27% were planning to.
Taking in lodgers is another route with 7% saying they have already done this and 10% say they will take on lodgers in the future. However, important legal considerations need to be factored in before becoming a resident landlord. For example, mortgage borrowers may need to check with their lenders, and it could impact other benefits and tax credits.
Sheldon Bosley Knight’s head of residential sales and marketing James Morton said: “With the cost of living crisis affecting everyone it’s no surprise people are looking at ways to save or make additional money.
“We would encourage anyone thinking of taking in a lodger to help with costs, or changing their mortgage arrangements should get expert advice, something we at Sheldon Bosley Knight can help with.”