Nearly half (45%) of borrowers either have or are considering paying an early repayment charge on their mortgage deal in or to fix to a reduced rate, according to research from The Mortgage Lender.

Among these borrowers, 7% say they have already paid an early repayment charge in order to get a fixed mortgage deal to mitigate a rise in mortgage costs, 13% say they will do this, while a further 25% say they are considering it.

Previous research from TML found that half of homeowners with a fixed, tracker or discount mortgage are on deals that need to be renewed within the next two years. A quarter (25%) of those who are expecting their mortgage costs to go up believe it will increase by an average extra cost of £441 a month. In addition, 19% say they are already cutting back on spending in order to save for or pay increased costs, a further 27% say they will do this, and 30% are considering doing so.

Others are looking into options to boost their income to afford rising costs, with 10% of homeowners revealing they have taken on extra work in order to afford their mortgage costs, a further 18% planning to do so and 29% considering it. Taking in lodgers is another route borrowers are considering in order to bring in additional funds, with 7% saying they have already done this, 10% planning to take on lodgers in the future, and 16% considering it.

Homeowners are also considering downsizing, with 10% admitting they will be doing so in order to reduce costs, and 20% thinking about it. Some are even thinking about selling completely and going back to renting to shelter from increasing costs; indeed, 24% have said they either will do this or are contemplating it.

Steve Griffiths, head of sales at TML, commented: “It can’t be denied that the cost of living and rising costs are starting to bite, so it’s not surprising that borrowers are looking for ways to save their money.”