Practical Ways to Navigate the Current Mortgage Climate
The UK mortgage landscape has changed, with rising mortgage rates becoming a growing concern for homeowners. However, amidst these uncertainties, the UK Mortgage Charter has emerged as a beacon of hope, offering practical ways to help UK homeowners during remortgaging and providing peace of mind.
The UK Mortgage Charter has emerged as a lifeline for homeowners. Its provisions not only offer financial relief but also provide peace of mind during difficult times. Whether it's the opportunity for interest free periods, secure mortgage lock-ins, or extended mortgage terms, homeowners can now know that support is available to guide them through challenging times.
Let's explore some practical ways in which the Mortgage Charter can benefit homeowners:
Interest-free periods
The Mortgage Charter introduces interest free periods of up to six months for borrowers who are up to date with their payments. This provision offers temporary relief and financial breathing space to owners facing financial challenges.
Extended mortgage terms
Homeowners can explore the option of extending their mortgage terms. By doing so, borrowers can reduce their monthly mortgage payments, reducing financial pressure without affecting their owner status.
Tailored support for struggling homeowners
The Charter ensures that struggling owners receive tailored support. Lenders use trained staff to help customers, offering a range of options such as temporary payment deferrals or interest only payments.
Protection from forced repossession
Homeowners can find peace of mind knowing that the Mortgage Charter prohibits forced repossession, except in exceptional circumstances, for up to a year from the first missed payment. This provision safeguards owners from immediate eviction during financial hardships.
Well-timed information
The Mortgage Charter obliges lenders to provide well timed information, enabling owners to plan ahead when their current mortgage rate is approaching its end. This allows ample time to explore suitable mortgage options.
Secure mortgage lock-in
Customers approaching the end of their fixed rate deals now have the opportunity to secure a new deal up to six months in advance. Moreover, owners can manage their new deal and request a better like for like deal with their lender until their new deal starts.
Credit score protection
The Charter ensures that owners can access support without impacting their credit rating. This safeguard is crucial, as a good credit score is important for future borrowing opportunities.
Affordability checks for optimal solutions
Homeowners seeking to make long term changes, such as switching to interest only payments or extending the term beyond their retirement date, will face affordability checks. This ensures that the chosen solution fits with their financial capabilities.
Accessible to majority of the mortgage market:
The Mortgage Charter applies to 97% of the mortgage market, offering support to the vast majority of homeowners up to date with payments and not seeking to borrow more or change their repayment type or term.
Talk to Tony
If you need to remortgage or are seeking mortgage help in these trying times, then the Mortgage Charter provides the options needed to help you weather the storm. Talking to an independent mortgage adviser 6-12 months before your fixed mortgage is due to end means that you can be fully prepared for what lies ahead and maximise the benefits of the Mortgage Charter, should you need to.
Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The amount will depend on your circumstances.
Skyline Mortgage Consultants Limited is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Skyline Mortgage Consultants LTD registered in England and Wales Number 8157062. Company Registered Office: Heathmans House, 19 Heathmans Road, London SW6 4TJ