Don’t let me scare you with this next sentence… Christmas is coming – is your mortgage ready?

We know the calendar just ticked over to November, so you might not want to be thinking about Christmas yet.

But it is important to consider how expensive this time of the year can be and if your mortgage is ready for it. Now is the time to check so you can still make changes before it’s too late!

While it is really easy to get caught up in the excitement of the festive season, your mortgage repayments don’t take a holiday.

So, here are some ways you can get prepared now.

Is Your Mortgage Ready?

The Christmas holidays are a great time to relax, spend time with family, and enjoy the sunshine! But it can be hard to enjoy all of that if the expenses are adding up.

Between food, family visiting, keeping the kids entertained over the holidays, and presents, Christmas can be one of the most expensive times of the year.

Combine all of that with the rising cost of living putting pressure on many household budgets, and it could make for a rather un-merry Christmas! A little planning now could make a big difference to how comfortably you make it through the next few months.

Here’s what you can do now to avoid unnecessary pressure on your finances…

Plan Ahead For the Extras

One of the biggest challenges with Christmas spending is that all of the extra costs seem to arrive at once! On top of the usual household expenses and mortgage repayments, there are now presents, Christmas lunch, extra petrol, accommodation, beach trips and back-to-school costs to think about.

You know the costs are coming, so rather than dealing with these expenses as they pop up, start planning now.

Make a list of the additional costs you are expecting over the holiday months and estimate how much you’ll need for each. Don’t forget to account for the smaller expenses like extra petrol, holiday outings, entertaining friends and family, and all the extra snacks you’ll need with the kids at home!

Once you have an idea of what’s coming, you can work out a practical amount to put aside each week or payday. Even saving small amounts regularly can help take the pressure off when the bills arrive.

Set a Realistic Christmas and Holiday Budget

It can be very easy to get carried away with spending at this time of the year. Having a realistic budget for what you will spend on food, activities, and festivities can help you enjoy the holiday season without spending more than you can comfortably afford.

Choose an amount to allocate to presents, food, entertainment, and a vacation. Then, try to stick to those amounts! To make your money go further, you could even throw in things like Secret Santa gifts, staycations, or house swaps with family members to inject some holiday fun without the big price tag.

It is also worth planning beyond December. January can bring another round of expenses if you have kids. School stationery, electronic devices, childcare, and school uniforms can all take a big chunk of your spending money. So, make sure you consider that in your budget.

Be Careful With Your Credit Card

Credit cards and buy-now-pay-later services can make Christmas spending feel more manageable because you don’t have to pay for everything immediately. However, they can also create financial pressure well into the new year.

If you can’t comfortably afford something now, think carefully about whether you really want to be paying for it several months down the track.

Adding extra debt to an already busy household budget can make it harder to manage your mortgage repayments and other regular commitments. Where possible, use money you’ve already budgeted and saved rather than relying on your future income to cover today’s spending.

Keep Your Mortgage a Priority

Before allocating any money to pressies, travel, or entertainment, ensure you have covered your mortgage repayments and essential household expenses. If you receive extra income, a bonus or additional holiday pay, think about how much you can realistically spend while still keeping some aside for upcoming commitments.

It’s also a good idea to check when your mortgage repayments are due over the holiday period. Public holidays and changes to pay dates can sometimes catch people out, so make sure there’s enough money in your account to cover repayments when they’re scheduled.

If your income is reduced over the holidays or you are worried about how you are going to cover your repayments this Christmas, now is the time to reach out to a friendly adviser for help. The Mortgage Suite team would love to chat about the options available if you have any concerns about your mortgage.

Consider Your Mortgage Structure

When your mortgage structure no longer works for your current circumstances, it can put pressure on your household budget. If this is the case, it won’t matter how much spending you try to reduce.

It doesn’t always mean that the repayments are too much. It could mean your repayment frequency could better align with when you get paid, or that the term is still appropriate for your situation. Maybe a combination of fixed and floating lending would give you greater flexibility, or an offset account could utilise your savings to better manage your mortgage. 

Changing your mortgage structure can free up cash flow or streamline your repayments, but it isn’t automatically the right solution for every family. For example, extending your loan term or reducing your repayments might give you more money in the short term, but could end up increasing the total amount of interest you pay over time.

This is where an experienced mortgage adviser can help you understand your options and work out whether there are changes worth considering. If you would like to see what options are available, the team at Mortgage Suite would welcome the opportunity to have an obligation-free chat about your mortgage structure.

Enjoy Christmas Without A Financial Hangover

Christmas and the summer holidays should be something to look forward to, not something that leaves you worrying about money until February.

Creating a realistic spending plan now can help you enjoy the holidays while keeping your mortgage commitments and finances on track. A mortgage review can also give you a clear picture of whether your structure still suits your circumstances.

At Mortgage Suite, we can help you look at your current mortgage structure, explore potential options, and make sure your lending continues to support your financial goals.

Get in touch with us now, and we’ll make sure your mortgage is ready for the silly season – and the year ahead!