Whether it's the fear of mounting debt, job insecurity, or the constant pressure to meet financial obligations such as your monthly mortgage repayments, the weight of financial stress can be a heavy burden to bear.
However, one of the worst things you can do is bury your head in the sand and allow anxiety to take control. By addressing your concerns head on and seeking the appropriate support, you can help alleviate the emotional burden and regain a sense of control over your finances and wellbeing.
Planning is key
The first step towards easing financial anxiety is to confront the issue head-on, as ignoring your concerns will only exacerbate the problem and lead to more stress in the long run. Start by taking an honest look at your financial situation. Assess your income, expenses, and outstanding debts, as this will provide you with a clearer understanding of where you stand, and allow you to formulate a plan of action.
Speak to your lender
Once you have a more comprehensive picture of your financial position and how it may impact you, you can reach out to your mortgage lender. If your circumstances have changed and led to a loss of income - for instance, due to job loss, or a bereavement - they will offer you a series of options designed to help you meet your payments.
Lenders are often willing to work with borrowers who are proactive and demonstrate a genuine willingness to address their financial challenges. Make sure to explain your situation honestly, and you’ll be able to work together to find a solution that works for you.
Mortgage Charter
The government is more than aware of the issues faced by borrowers in the current climate, and is actively striving to help homeowners to navigate this confusing period via the Mortgage Charter. This set of guidelines and commitments is designed to ensure fair treatment and greater support for homeowners struggling to meet their monthly mortgage repayments.
By familiarising yourself with the Mortgage Charter and what it entails, you can gain a better understanding of your rights and the resources available to assist you. This includes extending your mortgage term, switching to interest-only payments for up to six months, and ensuring that repossessions do not occur within 12 months of the first missed repayment.
Support resources
During times of financial anxiety, it's crucial to remember that you're not alone. There are numerous support services and organisations dedicated to helping individuals facing financial hardship that you can reach out to for guidance, advice, and assistance.
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Citizens Advice Bureau - helps individuals to resolve their legal, money, and other problems by providing free information and advice over the phone and in-person
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Money Helper - provides clear guidance on money and pensions, whether over the phone or face-to-face. This includes advice on clearing debt, reducing spending, and making the most of your income
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National Debtline - a debt advice charity dedicated to providing free advice and guidance on debt to people across the UK
Whether it's financial counselling or debt management programmes, these services can provide valuable insights and tools to navigate through challenging times. They can help you create a budget, negotiate with creditors, or explore alternative financial options that may be available to you. Remember, seeking help is a sign of strength, and there are people ready to support you on your journey to financial stability.
Keep the faith
While it may seem difficult to envision ever escaping your current situation and feelings when faced with financial anxiety, it's important to maintain hope, as this too shall pass. Market conditions are ever-changing, and just as things may seem worrying now, it’s just as certain that your circumstances can and will improve at some point.
By taking proactive steps to notify the relevant parties of your situation, and adopting a positive, willing mindset to take action, you can regain a sense of control over your financial situation. The most important thing to note is that you’re not alone, and that there are people and support services out there to listen to your concerns and guide you through.
Get in touch
If you have any concerns related to your mortgage, you can also speak to our team of advisers. They will be able to tailor their advice according to your circumstances, finding a solution that will support you.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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