More support and flexibility for mortgage holders
You may have seen that a number of lenders have signed up to the Government's recently created Mortgage Charter (Mortgage Charter - GOV.UK (www.gov.uk), which provides further support and flexibility to residential mortgage customers. These are:
- Anyone worried about their mortgage repayments can call their lender for information and support, without any impact on their credit score. We would encourage you to contact your bank who are there to help.
- Customers won’t be forced to have their homes repossessed within 12 months from their first missed payment.
- Customers approaching the end of a fixed rate deal will be offered the chance to lock in a deal up to six months ahead. They will also be able to apply for a better deal right up until their new term starts, if one is available.
- A new agreement between lenders, the FCA and the government allows customers to switch to an interest-only mortgage for six months, or extend their mortgage term to reduce their monthly payments and switch back to their original term within the first six months, if they choose to. Both options can be taken without a new affordability check or affecting their credit score.
- Support for customers who are up-to-date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without an affordability check.
- Providing timely information to help customers plan ahead should their current rate be due to end.
- Offer tailored support for anyone struggling and use trained staff to help customers. This could mean extending their term to reduce their payments, offering a switch to interest only payments, but also a range of other options like a payment holiday or part interest-part repayment. The right option will depend on the customer’s circumstances.
Remember, our team of financial advisers are available to provide guidance tailored to your specific needs and circumstances.
If you would like to discuss your financial situation further, please do not hesitate to get in touch.
SPEAK TO AN ADVISER
Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. You may be charged a fee for mortgage advice.
Related
On the 6th March, the Chancellor of the Exchequer, Jeremy Hunt, delivered his Spring Budget for 2024...
Read More >
Easter Holidays are a time for rest and relaxation, but they can also put a strain on your finances....
Read More >
February is the month of Valentine's Day, and a time where the air is filled with love and expre...
Read More >
Income protection is a crucial aspect of personal finance that is often overlooked by many people. I...
Read More >
While many of us may have become incensed by or frustrated with our spouses during the last two year...
Read More >
Taking a few precautions before the onset of Winter weather can help you avoid potential claims and ...
Read More >