In my opinion 2020 will go down in history as a year that defined a generation. Even once there are vaccines, the impact of the pandemic is going to be felt for a long time, from education, retail and the economy, day to day life (public transport, healthcare etc) but also the impact it’s had on the day to day lives of Joe Public.
Some people have been going to work throughout, some people have been working from home, some have been furloughed, and some have lost their jobs. There is no doubt that our finances will never be the same either. When the finance industry brought in mortgage holidays, it did take the pressure off some people for the short term, but I know a lot of people are now in a completely different financial position than they were in a year ago. Possibly even one or more income down. People are having to take stock of where they are and what the impact is going to be for them long term.
The property market is now picking up after the full lockdown, and a lot of people are reconsidering where they live. I used to live in a one bedroom flat, but now I’m in a three bedroom house with a small garden. I am so grateful I had this space during lockdown – as I live alone and have been working at home since March. There are a lot of people and families, particularly in London and other cities and highly populated areas, who are thinking about moving to get themselves more space. The fact that so many people have worked successfully from home during this time has also shown a lot of companies that they don’t need all their staff in the office everyday, meaning people could move further afield and still have the same jobs, but have more time and money and work remotely on an ongoing basis.
Some people are thinking of moving for other reasons – perhaps their income has taken a huge hit and they want to reduce their costs. Downsizing or moving to a cheaper area may be a great way of helping them keep a roof over their heads but making things that bit more affordable on an ongoing basis.
Whether you are thinking of moving to get more space, to reduce your outgoings or any other reason, a great place to start is with a mortgage calculator. You can put in different borrowing amounts, different term lengths, and interest rates and look at what your repayments would be. You can also see the breakdown of how much of your repayment is capital and how much is interest on an ongoing basis which I always find really interesting.
If you are struggling to pay bills or your mortgage, don’t jump straight away. Speak to a financial adviser, your mortgage provider and utility bill providers. You won’t be the only one in this position, and moving is not something to be taken lightly, especially if you could end up regretting it. They may be able to give you a further payment holiday, or help you out in other ways.