The last decade has been a challenging one for many people in the UK. The recession in 2008 had a severe impact upon millions of people and unemployment went to its highest rate since 1995. Pay freezes and wage caps meant that those still working were in effect earning less as cost of living continued to increase. Eventually something had to give. When people are looking at areas they can cut back on credit and monthly payments was one of the areas that would have the biggest impact for people. Many people turned to debt management plans (DMPs) and individual voluntary arrangements (IVA’s) to keep their heads above water.
Has it changed?
Looking at the situation today its not much different. A 9.4% increase in people declaring bankruptcy in 2017 from 2016 and a study by insurer RSA of 2000 people showed that:
- 30% felt they were living comfortably
- 40% stated their situation was permanently precarious and
- the remaining 30% stating they are not managing to get along.
Its easy to think that you’re the only person in the world struggling. The reality is you’re not alone. As Mortgage Brokers, we often find people are embarrassed about their financial situation for no reason. Times have been hard. We have all been through a lot to keep our families and lives on track. Lenders realise that perfect credit histories are few and far between and have adjusted how they assess clients accordingly.
With a mortgage payment likely to be your largest outgoing each month, don’t just sit on a lender’s variable rate because you feel there are no options out there.
Make a change
Don’t let your embarrassment or pride stop you sitting down and having a chat to review what options you have with one of our brokers today.
There is a good chance you will be very surprised at the wealth of options out there in this day and age. Don’t suffer in silence, you are not alone.
If you are considering remortgaging your home, contact A Move Brokers on 01244-478-780 for a discussion and an impartial “whole of market” quotation.
Sources :
https://www.theguardian.com/money/2018/jan/25/uk-workers-chronically-broke-study-economic-insecurity
https://www.thersa.org/discover/publications-and-articles/reports/seven-portraits-of-economic-security-and-modern-work-in-the-uk