Thousands of Brits looking to downsize

Research by Moneyextra has revealed that 595,000 Brits are looking to downsize within the next six months.

The research also revealed that over one million people in the UK are currently looking to make the most of falling prices and buy a property.

When looking at the typical house price of an average first-time buyer property (£130,000), monthly repayments can come in as low as £592.92, making this an affordable opportunity for many currently renting.

For ‘downsizers’, Moneyextra found that those extending the term of their mortgage and downsizing from a £200,000 mortgage on a £250,000 property to a £144,000 mortgage on a £180,000 property, could save as much as £555 per month on their monthly repayments, and free up some additional capital to boot.

Richard Mason, managing director at Moneyextra, said: “Our research shows that while 4% of homeowners are considering a move to a smaller property, a staggering 8% of homeowners are ignorant to the current economic conditions and still don't know what to do. The UK needs a wake-up call. Homeowners who are struggling with mortgage payments need to take their heads out of the sand or potentially face repossession.

“We’re urging people not to close their eyes to the opportunities and risks out there. There are still plenty of deals to choose from and significant savings can be made from downsizing. Our analysis shows that people who are struggling with their outgoings need to act fast - if they do so then collectively they could save nearly a third of a billion pounds every month - more than £550 each. Those looking to downsize now are making the right decision - move before you get into any serious difficulty to avoid the danger of repossession.”