Information for mortgage holders affected by Coronavirus from Tracy Gordon, Director of Operations and Compliance
We have been fielding lots of calls from people concerned about their jobs and how they can make their mortgage payments. I thought I should give everyone some information about the “Mortgage Holiday “offered earlier this week by the Chancellor.
Firstly, this is great news for anyone struggling and in the first instance they should contact their mortgage lender. Most lenders are offering the 3-month payment holiday for residential mortgage holders, but some will be offering other options, like partial payments or interest only for a period, which may be more suitable. Borrowers should confirm with their lender that if they take any other option, that their credit file will not be adversely affected.
Please bear in mind that although no payments will be collected for up to 3 months, the payments will be added to the outstanding balance and you will therefore pay a small amount of additional interest on the higher loan for the remaining term of the loan.
With last week’s interest rate cut, now is a great time for anyone who is paying their lender’s “Standard Variable Rate” to check if you can save some money by getting a better deal on your mortgage.
Last night, the Government confirmed that its three-month mortgage repayment holiday will be extended to landlords whose tenants are experiencing financial difficulties due to coronavirus. It will also apply to Help to Buy equity loans.
This will hopefully alleviate the pressure on landlords, who will be concerned about meeting mortgage payments themselves, and will mean no unnecessary pressure is put on their tenants as a result. The payment holiday will work in the same way as with residential mortgages.
At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances.
In times of uncertainty, borrowers look to make sure they are protected should the worst happen.
Again, we have taken lots of calls from clients where we arranged mortgages but they declined to take out a policy to protect their mortgage. This could be life cover, critical illness cover or a policy to protect their income against time off work for long term illness. Unlike some insurance policies which must be taken at outset, the great news is that mortgage protection can be taken out at any time.
For more details on how we can help you to be best prepared and move fast in the purchase of your dream home, contact Mortgage Required on 01628 507477 or book a video call with an adviser
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
10 days ago
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
11 days ago
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
14 days ago
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
21 days ago
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
23 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
28 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.