Mortgage advice + top tips on how to save some money NOW
Looking for mortgage advice & some quick budgeting tips
We understand you are likely to be worried about your finances as a result of the Covid-19 outbreak. The current situation has caught many of us off guard with little to no time to put ‘rainy day’ plans in place.
But fear not, whether you were just setting sights on your first home, contemplating a buy to let investment, remortgaging to release some equity, syncing a sale in with the end of the mortgage term or are worried if your current tenant can’t pay, help is at hand. We can recommend independent mortgage advisors who also specialise in all the above, including Government backed Help to Buy purchase options. They are also up to speed with the latest government support available in response to the Covid-19 crisis and happy to discuss your options with you.
Please contact our teams and we can put you in touch with the relevant specialist to suit your circumstances and requirements:
Ashford: 01233 629 629 | ashford@sandersonsuk.com
Canterbury: 001227 784 784 | canterbury@sandersonsuk.com
Maidstone: 01622 686 686| maidstone@sandersonsuk.com
In the meantime, there are also a few things you can do to prepare yourselves financially now and for the future:
Rainy day fund
We advise that everyone budgets to keep a small fund to one side for emergencies by reviewing what you have coming in, how much is going out and what you have left over that could be put aside for a rainy day. You never know when you might need it but will be grateful when you do.
Good planning, budgeting and forecasting
We suggest you set up your own personal budget template in a programme like Microsoft Excel to record all of your household income after tax. Record any fixed essential living costs beneath that to include rent/mortgage, council tax, mobile phone, insurance, utilities, internet/communications, pet costs, food and drinks. There will then be other costs such as car finance agreements, fuel, health/beauty/wellbeing, school fees/meals, gym membership, toiletries, subscriptions (e.g. Netflix, Amazon Prime, Sky), travel costs, sports clubs etc. You may also set aside a budget for non-essential entertainment such as a cinema trip, new clothes, dining out, takeaways, attending concerts, sports events and gifts. Many of these we already anticipate you are making savings on during this time. It is sensible to have an idea on what you are spending to enable you to put in place the ‘rainy day fund’ mentioned in point 1 above.
Saving money now
Now might be a good opportunity to review where you might be able to make some cut-backs, even if only short time. You may already be finding during the current period that you are making a noticeable saving on fuel, travel costs, dining out, pubs, entertainment but here are some other top tips:
- You could freeze your gym membership, create a workout space at home and use one of the thousands of free exercise plans available on YouTube, many of which require no equipment.
- Assess if any savings can be made on your household utility bills via the online tools available.
- See if you are eligible for a council tax reduction.
- Set out a meal plan so that you are only buying what you actually need to avoid wastage.
- Speak to the providers of any subscriptions or memberships you have in place about a freeze in your plan. For example, review if you need all your current subscriptions (e.g. Sky Sports, Netflix, Amazon, lottery).
- Cook in batches and freeze portions to quickly grab at a later date and feel like you have given yourself a night off cooking.
- Clear space = clear mind. Have a clear out so you can sell some items you don’t need or donate them to a local charity. To avoid placing unnecessary pressure on the postal system at this time, eBay allows you to save listings as draft so get them ready with all your photos and descriptions so you can set them live as soon everything get back to normal.
- Start to grow your own vegetables - many local garden centres are still operating with a delivery only service so now is the time to support them and have a go at planting your own vegetables or herbs.
- Hold off buying new clothes and other luxuries- this saves you money and shows consideration for the people who are still working and we want to minimise their work to essential deliveries only during this time.
- Instead of sending an expensive present to that someone special when it is their birthday dedicate the gift of love and time. Schedule a video call, bring out some old photographs, enjoy reminiscing over a bottle of wine and promise to meet up when normal life resumes.
Securing the roof over your head
Finally the most important one as it relates to the roof over your head: If you are suspect you will have an issue with payments for rent/mortgages we would always suggest you speak to the landlord/agent or lender first. If you are a tenant, please click here for our earlier article which covers all the questions you are likely to have. They are far more likely to be compassionate, offer guidance and help you to work out a plan for the future than if you simply ignore them and refuse to make any payment commitment. This is a time of crisis for everyone, now is the time to work together.