The Credit Crunch Expert
1.
Shop around for the best mortgage deals. Try to secure a fixed rate that
you know you can afford now and in the future.
2. If possible, make overpayments to help reduce the capital and save interest long term. Not many people are in the position during the credit crunch where they can afford to do this with their basic wage so use any money from bonuses or overtime to give you a long term saving rather than wasting it in the short term.
3. Consider switching mortgage providers mid term. Be careful of any early repayment charges. Some lenders are now offering a 6% cashback if you switch to them which you could use to help clear an outstanding loan. look at the figures carefully to make sure that you are not paying for this cashback for the rest of your mortgage.
4. If you are really struggling to meet your mortgage payments then consider taking in a lodger. The Government's Rent-a-Room scheme means you can receive up to £4,250 a year from a tenant tax-free. Click Here for further information.
5. Only take out an interest only mortgage as a last option. The payments may be lower now but eventually you have to pay off the capital.
6. Always talk to your lender if you are in financial difficulties. They may allow you a payment holiday or extend the term to allow lower monthly payments.