Mortgages, and the rising monthly mortgage costs, have been constantly in the news of late.
The Bank of England has increased the BBR again, this time by 0.25% to 5.25% (3rd August) and has said they may need to increase mortgage costs further in the coming months.
Despite the recent hike in BBR, lenders are at last reducing mortgage rates. It seems the lenders factored in higher increases than have materialised and are now looking for more business. They will not be reduced to the low levels we have experienced recently but it is good to see they are going in the right direction.
Are you concerned about your future mortgage costs?
If you are, do not delay in taking action, even if you are six months away from your mortgage deal expiring. Most lenders, approximately 90% of the mortgage market, have signed up to the Mortgage Charter where help is offered in a number of ways to borrowers including the ability to lock in a new rate with your current mortgage provider six months in advance.
Help To Buy
Homeowners in England who used the Government scheme ‘Help To Buy’ to get onto the property ladder are now struggling to get the vital paperwork they need to remortgage or sell.
A firm called Lenvi took over the running of the scheme in June and ever since, homeowners have faced a catalogue of problems including being left on hold for hours, long delays waiting for paperwork and direct debits not being taken. The result of this has been lost property sales, missed payments and increased mortgage payments due to not being able to remortgage.
If you have a Help To Buy and you are looking at moving or your current mortgage deal is coming to an end, the sooner you contact Lenvi the better. In excess of an eight week wait is not uncommon. You can contact Lenvi on email at customerservices@myhelptobuyloan.co.uk
55’s and over
Whilst mortgages used to run to retirement age, many lenders now provide options that go into your 80’s or even 90’s. Retirement Interest only mortgages are now a common solution alongside the more traditional equity release products which themselves have developed into consumer-friendly solutions (unlike the earlier products). Along with the ability to access your pension, the routes available could be a mixture of the above. If your mortgage is nearing the end of its term and you have an interest only product, there are other options other than paying it off. Every circumstance is different so the solution needs careful research and consideration.
What to do if you are in financial difficulty
Do not do anything. This can have the worst impact on you now and in the future. If you are struggling to pay your mortgage, speak to your lender. For other debts, it is worth speaking to the Citizens Advice Bureau, the Money Advice Service or National Debtline.
Blake and Day is, registered for all types of mortgages, later life lending and additional borrowing. Please contact Mark Reynolds on 07876 688996 or email mark.reynolds@bdfinancial.co.uk with any enquiries you might have and he will be more than happy to help you.
Recent Comments