Struggling With Mortgage Payments? Here’s What You Can Do

• 800,000 homeowners will see their fixed-rate deals end this year, with rates now between 5% and 5.5%.
• Options include mortgage payment holidays, interest-only plans, and extending your term.
• Speaking to your lender, mortgage broker, or Citizens Advice can help you find a solution.
• Alternative ways to boost income include taking in lodgers or renting out your home for filming.

Homeowners facing mortgage worries aren’t alone – mortgage rates remain high, and many are struggling to meet repayments. With around 800,000 people set to come off fixed-rate deals this year, experts are urging homeowners to explore their options early to avoid financial trouble.

If you’re facing short-term cash struggles, you could request a mortgage payment holiday from your lender. This pauses payments for a set period, but interest still accrues. Alternatively, switching to an interest-only mortgage for a limited time could help reduce costs.

If you need a long-term fix, some lenders allow mortgage term extensions, which lower monthly repayments but increase the total interest paid. Offset mortgages, where savings are linked to your mortgage to reduce interest, may also be an option.

For those in serious difficulty, lenders may allow you to capitalise arrears by adding missed payments to your mortgage balance. However, this usually means higher monthly payments.

Other ways to boost income include renting out a room, using your home for film and TV shoots, or even downsizing to a more affordable property.

Tom Church, Co-Founder of LatestDeals.co.uk, said: "With mortgage rates still high, it's crucial to explore all the options available. Whether it's negotiating with your lender, switching to a different plan, or finding new ways to bring in extra income, acting early can make all the difference."