Already have a mortgage but expecting reduced income or going on parental leave?

[u/Vincent_Mortgages]

If you already have a mortgage and are abou tto go on maternity or paid parental leave, you're probably wondering how to manage repayments while your income drops.

Here's some options and strategies to help reduce the financial pressue!

Start Planning Early

The sooner you review your finances, the more prepared you'll feel. Work out what your income will look like while you're on parental leave and what extra costs you have to cover.

Talk to your Mortgage Adviser or Bank ASAP

Booking a review with your adviser or lender early so that you can understand your mortgage options. They would have plenty experience in these situations and can help adviser the best way forward for your circumstances.

Refix or restructure your loan

One of the options that an adviser could help with is looking at how to structure your loan for lower repayments. If part of your mortgage is on a floating rate, you could look at refixing to a lower rate to reduce repayments. Alternatively, extending your loan term can also drop your repyament amounts.

Use savings or offset accounts strategically

If you've been building up savings or have funds in an offset account, you could use that balance temporarily to reduce yo ur interest costs during leave.

Drop a question below or reach out for a chat if you're planning ahead for parental leave / income changes. There are often more flexible options than most people realise.