Many mortgage holders have seen their monthly payments soar in the past year.
Alongside other cost-of-living pressures, the rise in this large monthly outgoing can be a major cause of stress.
A meeting on 7 December 2022 provided some clarity and comfort. Chancellor Jeremy Hunt and the Chair of the Financial Conduct Authority (FCA) met with mortgage lenders to agree measures to help struggling borrowers.
Payment respite
Lenders acknowledged the difficulties many borrowers are facing and agreed to offer tailored financial support to anyone finding it hard to make payments. This could be in the form of:
· Extensions to mortgage terms to lower monthly payments
· Short-term reductions in monthly payments
· Interest-only payments for a limited period.
Lenders also pledged to provide well-timed information to help customers plan ahead. Those who are up to date with payments could also be allowed to switch to a new mortgage deal without another affordability test.
Don’t suffer in silence
Mortgage rates have calmed since September but remain significantly higher than at the start
of last year. If you are struggling to make payments on your mortgage, we’re always here to discuss the best options available to you.
You can get in touch with us on 01234 604501 or email harjinder@bibimortgages.co.uk
Your home may be repossessed if you do not keep up repayments on your mortgage
