Many of us are looking back over the past few weeks and working out how we can start on our New Year’s resolutions – and getting a hold of spending is always a big one.
Christmas was a time to enjoy and put off until the New Year any major financial regrets. And many of us spent more than we’d thought we would. Fortunately, there are always options, even when it feels tricky to get on top of spending.
We also need to look out for our regular spending, and mortgages are the biggest for most of us. This year, as the Bank of England looks forward to stepping up its base rates, we’ll have to pay special attention to our flexible-rate mortgages.
The Bank of England indeed thinks that we need to watch out. They recently said that if the base rose to 3%, more people would fall into what they call “vulnerable mortgagors.” What they mean by this is people who need to spend at least 35% of their income (before taxes) on their mortgage repayments.
HML’s director of business intelligence, Damian Riley, has some good advice:
“If borrowers take sensible steps – such as tailoring expenditure in line with their priority financial commitments – there is no reason why a large proportion should fall into the debt trap.”
It is also the perfect time to look at your mortgage rates. We’re here to help, providing independent advice and can work through all of your options. So, give us a call, and we can help you with your New Year’s financial resolutions. (We can’t help with diet and exercise, sadly.)