Could you be entitled to a break in monthly mortgage repayments?
The burden of keeping up with monthly mortgage repayments has really taken its toll on many households over recent months, and amongst the suggestions put forward by senior government officials such as Alistair Darling is the possibility of mortgage payments breaks to help those struggling to keep on top of their repayments. However, some industry officials state that many homeowners could already be entitled to mortgage payments breaks, and are urging consumers to check the small print on their mortgage loan agreement to determine their eligibility.
According to officials from MoneyExpert.com around 50% of the various discounted, fixed, and variable mortgages on the market offer some form of payment break facility, which struggling consumers may be able to benefit from in the current financial climate. Over the past couple of years the number of mortgages offering this sort of facility has actually risen according to officials, so many people may have this facility and not even realise it.
An official from the group stated: “Lenders are aware they need to be flexible with their customers and are already ahead of the game – certainly more than the chancellor might have us believe. With around six in 10 mortgage products coming with a potential payment holiday written into the terms and conditions, cash-strapped home owners can at least enquire about taking a break.”
He added: “Taking a payment holiday will need to be agreed with your lender and just because there’s a facility for it doesn’t mean your bank will let you off repayments easily. In fact while lenders are struggling your argument will need to be watertight – but banks would rather know you’re under the cosh now and intend to do something than wait until you’re defaulting because you can’t afford the repayments.”
Recent additions:
- Nationwide asks for larger deposits from borrowers
- Mortgage lending levels remain subdued
- How will government help struggling homeowners?
- Mortgages could continue to get more expensive
- First annual fall since 90s for house prices
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