Homeowners are feeling the squeeze on their mortgage costs

One in three take on extra work to pay for higher mortgage costs

Around one in three homeowners are working extra hours or taking on side hustles alongside their main jobs to help them cover the cost of higher mortgage repayments, according to new research.

Instead of waiting to see exactly how much extra they’ll have to pay when their current mortgage deals come to an end, research by temporary work online marketplace Indeed Flex found that nearly a third of homeowners (30%) due to remortgage in the next year are boosting their savings by doing extra shifts or taking on second jobs. 

Novo Constare, chief executive and co-founder of Indeed Flex said: “Facing financial realities head-on can be challenging, but ignoring them is likely to prove costly in the long run. While those with mortgages expiring this year cannot escape repayment increases, a substantial number are actively seizing control of their finances and trying to get ahead of the increase in their outgoings.”

An estimated 800,000 fixed rate deals are due to come to an end in the second half of this year, with a further 1.6 million fixed rate mortgages due to finish in 2024. More than half of homeowners (54%) are reducing their spending so that they can afford any rises, Indeed Flex said, while a further 34% are putting more into their savings to make sure they can afford any rises.

Other ways to manage steeper mortgage payments

If you or someone you know has a fixed rate deal finishing soon, and you’re able to do so, you may want to consider making overpayments so you can reduce your balance before you move onto a higher rate. Our mortgage overpayment calculator will show how both lump sum overpayments and monthly overpayments could help save you interest and reduce the term of your loan.

You can usually overpay up to 10% of your mortgage balance each year without penalty whilst you’re tied into your deal, but always check your mortgage’s terms and conditions to see whether your lender imposes a lower or higher limit.

Overpaying your mortgage also has the advantage that it may mean you fall into a lower loan to value (LTV) bracket when you remortgage, giving you access to a wider choice of mortgage deals at better rates.

You can start looking for your next mortgage deal up to six months before your current mortgage deal finishes, so it’s well worth doing plenty of research sooner rather than later to ensure you end up on the best possible deal.

London & Country Mortgages Ltd, Beazer House, Lower Bristol Road, Bath, BA2 3BA is a company limited by shares. Our Companies House number is 1988608. We are also authorised and regulated by the Financial Conduct Authority. Our FCA number is 143002. The FCA does not regulate most Buy to Let mortgages.

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

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