At the beginning of 2023, the Bank of England increased the base rate to 4% and currently stands at 4.50%. Considering the current global and UK economy, many speculate more hikes are likely in the future.
Given these circumstances, how easy or difficult can it be to manage a mortgage while making sure your homefront expenses are not being compromised? It’s all about manageability. Let’s look at some effective measures you can implement to help balance both the mortgage as well as home expenses and your lifestyle.
01. Be energy efficient
In London and UK these days it’s all about saving up on expenses. Let’s begin with the simpler forms of saving. Have you thought about the amount you might be spending on your monthly energy costs? It could be much more than you think. With pretty much everything out there on an upward spiral, you may have to re-evaluate how much you are spending on your energy-guzzling devices such as heaters, kitchen appliances, house cleaning equipment, dryers, and washing machines.
By cutting down or limiting the use of some of these energy-consuming devices, you are sure to save up quite a bit at the end of each month. Which of course will be a significant saving when you calculate it as a total for the entire year. And in turn, will contribute to the savings for paying off your mortgage. While some devices consume more energy, there are others that are energy efficient. A point to remember is that devices that are older in age may have very low efficiency in comparison to newer equipment. It might be worth taking a look at these to determine how well they are geared for energy-efficient consumption and saving money.
02. Have you checked your home appliances and services bills?
Most of us in the UK and London don’t bother checking on our Sattelite TV, broadband connection, or even telephone bills to see if they are actually being utilized. You might be paying for some services that are useless and obsolete. Keep a check on these services to see if you are paying needlessly or maybe upgrade them with cheaper offers that you may have missed at some point in time. Some companies in UK and London may have special offers that you can take advantage of to save on your cash outflow. Although these may seem insignificant at the beginning, a long-term drain however insignificant it may seem, will put a strain on your financial strength. In short, it’s money that could have been put aside to pay off your mortgage.
03. Advise from your mortgage broker
This is probably the most important tip you can have. With volatile economies throwing their weight around, you may find yourself ‘lost’ in a world of financial chaos trying to handle your mortgage before you know it. Interest rates may rise further, but working with a mortgage broker will provide valuable insight should you need to remortgage your property, for instance. A mortgage broker or adviser is a valuable resource who is well-connected with lenders and other stakeholders. He or she will be able to come up quickly with alternates that provide you with savings on your deal. At BVS Mortgages and Financial Services, our expert mortgage advisers in London are always at hand ready to assist their clients with customer-centric solutions.
If you have any concerns about your mortgage and need to know more about saving up and how it will benefit you, don’t hesitate to call the BVS hotline numbers.
04. Utilities and subscriptions
Have you ever wondered how some monthly expenses seem to jump out at you out of nowhere? Yes, it’s true, these unforeseen expenditures are not really surprises. But they can be, when they are forgotten for a while and only come up when its time to pay the bill.
Subscriptions and some utilities are like that. We may not remember when or for what we had subscribed at one time, it could be a magazine, some internet service, or maybe even a software package that keeps renewing on its own. Take a moment or two and carry out a quick inventory check. This may seem like a waste of time, but again, it could be a needless leak on your finances if not checked. Unsubscribe to anything that you do not find useful. Another matter of concern could be utility bills, such as water or gas bill. You may need to keep a check on how much you are spending at the end of each month and try to do better on regulating any wastage. These seemingly insignificant wasted expenses could be diverted to paying off your mortgage.
05. Manage your day-to-day expenses
Many of us tend to ignore expenses we incur on a day-to-day basis and treat it as if it were just an entitled payout. Daily travel expenses can be quite heavy on the budget, but do we actually monitor how much we spend? Consider cutting costs on your daily travel. For instance, if you have two cars and both are utilized to travel at almost the same time to destinations that are in moderate proximity, you could use just one car to travel and sell the other to generate some capital that you can use to pay off your mortgage. While this is only one method to save up on your finances that can help settle a mortgage, keep an eye out for other similar methods that can save your financial commitments.
Managing your personal finances to pay off a mortgage may not be easy as it sounds. Getting professional advice will really help. Speak to our Mortgage advisers at BVS Mortgages and Financial Solutions on how to implement practical strategies that bring about effective financial management.
Managing a mortgage is a balancing act. But with careful financial management, handling a mortgage in London and the UK while not compromising on your lifestyle, is not impossible. Practical thinking and help from a mortgage broker could be what it takes to successfully ensure that your mortgage works for you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Approved by The Openwork Partnership on 28th February 2023