18% of homeowners to take on extra work to meet increased mortgage repayments

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by Kay Murchie

Research from Lloyds TSB Mortgages has established that 18% of homeowners are prepared to take on extra part-time work to meet rising mortgage payments, this figure increases to 25% for the under 35 age group.

The research showed that 64% will be curbing their spending this Christmas with over 75% of under 25’s saying they will be tightening their purse strings this festive period.

71% of re-mortgagers are anticipating an increase in their monthly mortgage repayments when their current deal runs out. 1000 homeowners were questioned by Lloyds TSB on how they intend to meet these increased costs.

Alison Burns of Lloyds TSB said curbing Christmas spending provides a short-term solution but those with mortgages should ensure their current deal is suited to their specific needs and changing circumstances. For instance, some may opt for a stepped rate deal that allows them to ease into the new higher interest rate environment. Others may choose a tracker product, which will enable them to benefit from any potential falls in interest rates

Over half of those surveyed by Lloyds TSB will be seeking to make cuts on other household bills and are considering switching suppliers to cut costs. 32% say they will reduce their food expenditure by taking lunch to work and dining out less. In addition, 35% are putting holidays on hold.

Finally, 5% of younger homeowners plan to bring in a lodger to help with rising mortgage payments with the same amount moving in with a partner.