Repayment crisis and how to deal with it
The Times reported today on the crisis in people struggling to keep up repayments on interest only mortgages whilst, at the same time, featuring a couple of ways people are dealing with this. The second article deals with the increasing numbers of people (of all ages) looking to their spare rooms to help them through financial hardship.
We’ve certainly noticed a steep rise in people looking to take in a lodger in the past year. Whilst the 25-34 age group remains the largest for taking in lodgers (no doubt because of some of the problems highlighted by The Times today) the older age groups are where the biggest growth is. Adverts on SpareRoom from those in the 55-64 age group have practically doubled in the past year whilst the 65+ group has seen an increase of 69%. For many older people the thought of selling their home to pay for care is more than they’re prepared to contemplate at the moment. With many having a property as their only sizeable asset they’re keen to keep it to pass on to children. As few can live on savings in these times of low interest rates, taking in a lodger is helping thousands keep their finances balanced.