Managing finances during a cost-of-living crisis in the UK
Living costs have been on the rise and many households are struggling. Factors such as the COVID-19 pandemic, rising energy costs, and inflation have contributed to the current cost-of-living crisis.
In this article, we provide tips on how to manage your finances during these difficult times and explain how Newhomes can assist you.
Reducing your spending
One of the best ways to manage your finances during a cost-of-living crisis is to reduce your spending. You may need to cut back on non-essential items or find ways to save money on essential items. Here are some tips:
- Review your budget and see where you can cut back on spending.
- Shop around for cheaper energy deals and switch providers if necessary.
- Look for discounts and coupons when shopping for groceries and other essentials.
- Consider alternative methods of transportation such as walking, biking, or taking public transport instead of driving everywhere
- An effective way to manage your finances during a cost-of-living crisis is to reduce your spending wherever possible. Check out our summer blog for useful tips on cutting down on your bills and managing your budget. We recommend making changes such as reducing your energy usage, food budget, and shopping expenses.
Government support
Managing finances during a cost-of-living crisis can be incredibly challenging. At Newhomes, we understand this all too well. That’s why we want to highlight the support that the UK government is providing to families impacted by the cost-of-living crisis this year. The Government is offering various schemes such as assistance with energy bills, cost-of-living payments for those on lower incomes, and raising national insurance contribution thresholds. Visit www.gov.uk/cost-of-living to find out more about these funds and check if you’re eligible for support.
If you’re struggling to make ends meet, don’t despair. The government has several support options available for those in need. In England, residents can apply for a council tax reduction if they’re on a low income or unemployed. In Scotland, eligible residents can get free prescriptions and have travel costs covered. And in Wales, households with someone receiving Universal Credit can get up to £50 off their energy bill through the Welsh Government’s Winter Fuel Payment Scheme.
How Newhomes can help
Newhomes can provide several ways to help you manage your finances during a cost-of-living crisis.
Mortgage changes
We understand that keeping up with mortgage payments can be challenging, especially during a cost of living crisis. That’s why we offer a range of options to help you manage your mortgage.
Mortgage Debt consolidation
One option is Mortgage Debt consolidation using the equity in your home to pay off other debts. This typically would mean taking out a new mortgage loan that is larger than your current mortgage balance and using the additional funds to pay off other debts such as credit card balances, car finance, or personal loans.
Once your debts have been paid off, you will have just one monthly payment on your new mortgage loan to repay each month.
If you’re struggling to keep up with your mortgage payments, we encourage you to reach out to us to discuss your options. Our team of expert Mortgage advisors can help you find the most suitable for your situation.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Home Improvements
Another option is upgrading your home especially if you live in an older home or one with a low–energy performance certificate (EPC).
Upgrades such as replacing windows and doors, adding insulation to your walls or roof, installing solar panels, or switching to a heat pump could all help improve the efficiency of your home and save you money on energy bills.
If you need to release equity to fund these upgrades, Newhomes can also help you with this.
Always here to help
We understand that managing finances during a cost-of-living crisis can be overwhelming. At Newhomes, we’re committed to providing the best possible support to help you manage your finances. Call us on 01543 464 144 or request a call back on our website, and we’ll work with you to explore your mortgage and protection options and see if we can help save you money.
Cost of living FAQs
To manage your finances during a cost of living crisis, you can reduce your spending where possible, look for government support, and consider making changes to your mortgage or releasing equity from your home to fund energy-efficient upgrades.
Some tips for reducing your spending during a cost-of-living crisis include cutting down on your bills, managing your budget, and making energy-efficient upgrades to your home.
Yes, the UK Government is providing support for families during the cost of living crisis. The Government has allocated support this year to help families with energy bills, cost-of-living payments for those on lower incomes, raising national insurance contribution thresholds, and other schemes.
Newhomes can help you manage your finances during a cost-of-living crisis by providing advice on Mortgage Debt Consolidation, making energy-efficient upgrades to your home, and releasing equity from your home to fund these upgrades.
Upgrades to your heating system, replacing older windows and doors, adding insulation to your walls or roof, installing solar panels, or switching to a heat pump could all help improve the efficiency of your home and save you money on heating and energy bills.
You can release equity from your home to fund energy-efficient upgrades by consulting with Newhomes advisors. They can provide you with information on how to release equity from your home, and help you decide if this is the right decision for you.
One short-term option for reducing your mortgage repayments during a cost of living crisis is to extend your mortgage term or remortgage to an interest-only repayment model temporarily. It’s always important to talk to a Newhomes advisor to see if this is the right option for you.
Changing your mortgage before your fixed rate expires may result in an early repayment charge from your current lender. It is important to talk through this with a Newhomes advisor before making any changes to your mortgage.
You can check if you’re entitled to all the support from the government during a cost-of-living crisis by visiting the official government website at www.gov.uk/cost-of-living. Additionally, you can seek advice from Citizens Advice or a Newhomes advisor.
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