It is always advisable to check the service charges you are asked to pay rather than simply...
You only have to pick up a paper, switch on your television or walk down your local high street to see that the Credit Crunch is upon us and the economic climate does not seem to be looking particularly positive for now or the near future.
This is going to affect us all, but it is important, that if it does affect you, you act quickly rather than letting the money troubles and problems get on top of you and spiral out of control.
MOVE HOUSE
If you need to move house, for personal or monetary reasons, contrary to public opinion, there are properties and Buyers out there. One train of thought is the sooner you get your property on the market, the sooner you will be able to establish whether or not moving house is the right option for you, in the present economic climate. By delaying putting your property on the market or looking for a property, you will never know what opportunities are out there and whether there are prospective Buyers wanting a house like yours!
If you are struggling with your mortgage repayments, it is far better for you to act now and contact your mortgage company first rather than let the problem get so serious that your mortgage company repossess and take control of selling your home.
REMORTGAGE
If your fixed rate mortgage is due to come to an end, again act sooner rather than later. It is far better to not leave your investigations to the last minute and give yourself a few months to assess what is on offer.
SELL TO RENT BACK SCHEMES
Some Companies do offer overstretched home owners this scheme. They purchase people’s homes for around 70%-80% of it’s value, they then rent the property back to the original owner at a market rent, or sometimes less than their mortgage payments (if these were lower than rental value).
This gives the homeowner the spare cash to settle their mortgages and debts and still live in their home.
Of course this is another alternative, although there can be a catch so proper research does need to be done. You can end up selling your house for less than it is worth and in practice you are not always given security of a long-term tenancy so you can end up evicted after the term of the first agreed tenancy expires, say 6 months!
SMALL CHANGES = BIG RESULTS
Do not be laid back about this, there are small ways to save yourself money per month, just spend some time assessing your utilities. Compare the market and get yourself the best deal for you.
If you aren’t on a water meter – see if it would be more cost effective to be on a meter.
Check with the Council that you are getting all the relief you are entitled to, are you living alone and paying full council tax? Is your Tax Band correct for your property?
Look into insulation, you may be entitled to having your house insulated for free.
Check your tax code – are you paying too much tax on your earnings?
OVERALL
Do not be scared and do not run away from your problems, this will only prolong matters and make your situation worse.