With the announcement from the Financial Conduct Authority (FCA) that banks and building societies can now extend Mortgage Payment Holidays for a further 3 months there is going to be a lot of questions from borrowers on how this is going to impact their potential borrowing in the future. Also, could there be other options of reducing your mortgage payments that could help?
The difference between independent and bank mortgage advisers
Mortgage advisers in a bank or building society can only offer you advice and mortgage products from the bank or building society they work for. If they don’t have a lending solution that is right for you, then you’ll have to find an alternative option yourself.
An independent mortgage adviser will search products from across the market, they have a range of lenders and products available to you. With Clever Mortgages, this also comes with the experience of dealing with applications from those with low or bad credit ratings. They are able to find the right solution from 100’s of lenders.
Is it time to seek independent advice?
Taking independent advice can make the difference whether you are looking to purchase, remortgage or just want to obtain a better rate. Speaking to our brokers can ensure you achieve a significantly better deal; they’ll take your individual requirements in to account and could potentially save you thousands of pounds over the mortgage term.
Mortgage Payment Holidays
Mortgage Payment Holidays have given a temporary solution to over 1 in 7 homeowners who have found their income has been affected by COVID 19, but these are not free holidays, they are payment deferrals and will affect your mortgage balance, term and/or monthly payments going forward. If your income is still affected the further extension may be welcomed, but you must also consider other options, could you make a partial payment each month, could you do a product transfer to lower your rate, could you use any over payments that you have made previously? These are all options you should consider before looking to extend the holiday.
Read more on payment holidays here.
Remember: A mortgage payment holiday, MUST be agreed with the lender. Cancelling your direct debit is not a payment holiday and will be counted as a missed payment. You should not cancel your direct debit without agreeing this with the lender first. A missed payment could show up in your credit file and may impact your ability to remortgage.
Why would I not just speak to my current lender, bank or building society?
As mentioned above, your current lender, bank or building society can only talk to you about the products they offer or give generic advice and information, they are not able to offer you products from other lenders, you are potentially missing out on other potential options and what might be a better solution.
Our mortgages advisers are qualified professionals who specialise in finding the most suitable mortgage deal for your circumstances. They have access to a wide range of lenders from across the market and can make the difference between an application being declined or successful.
Lending criteria and available options available at the moment are changing daily and it is our mortgage advisers’ job to keep on top of the information and to find a solution to your lending requirement.
If you’ve had financial issues in the past, then you have a lot to gain from speaking to a mortgage adviser from Clever Mortgages, their specialisation is getting mortgages for people with bad credit and this requires multiple options from a comprehensive range of lenders. A mortgage adviser and their supporting administration unit is there to guide you through the process and make sure they maximise your opportunities with the lenders.
If you still feel you need to contact your existing lender for a payment holiday, you can find useful contact information here.