As a Guildford mortgage broker, it’s our job to help people get a mortgage in the UK. However, given the attention surrounding mortgage rates and affordability, we thought we’d provide a general mortgage advice article that focuses less on how our Guildford mortgage advisers can help you before getting a mortgage, and more on what to do should you face trouble after you get a mortgage.
So, with that in mind, let’s start with the Mortgage Charter.
What is the Mortgage Charter?
The Mortgage Charter currently consists of 43 companies in the world of mortgage lending (representing approximately 90% of the mortgage market), all of which have committed to offering their customers support over what is predicted to be a challenging period.
Following the Bank of England’s decision to increase the base rate to 5.00%, the cost of borrowing is steadily growing. As a nation, we’ve become used to low interest rates – and therefore low borrowing costs – for around a decade and a half. As we all know, nothing lasts forever and now a combination of factors is making the cost of living notably high.
The Mortgage Charter has been designed to mitigate this and provide a financial cushion to those who are vulnerable to escalating costs in the context of mortgage repayments.
What are the benefits of the Mortgage Charter?
We’ve been a mortgage broker in Guildford since 2005 and have rarely seen lenders group together in a way that aims to safeguard homeowners through a joint approach.
In terms of benefits available under the Mortgage Charter, the ones that stand out for us are:
1. No judgement. Borrowers who are concerned about their repayments can approach their lender for help without impacting their credit file
2. No repeated affordability checks. Customers with a history of making problem-free repayments can switch to a new mortgage deal as their current fixed rate mortgage comes to a close without having to undergo an affordability check.
3. No one size fits all. Those struggling to make their repayments will be offered support from lenders that best suits their needs. This may include switching to interest only monthly mortgage payments or even temporary payment deferrals.
4. No one to lose their home. As this is one of the most feared scenarios, it’s possibly one of the most important points. As of 26th June, no homeowner can be forced to leave their home without their consent, unless in exceptional circumstances, in less than a year from their first missed payment.
5. No pressure. Borrowers can now switch to interest-only mortgage payments for six months or extend their mortgage term in order to make repayments more affordable.
Need more information?
If we’ve arranged your mortgage for you and you have questions or concerns, feel free to contact our team of Guildford mortgage advisers on 01483 238280 or by e-mailing info@complete-mortgages.co.uk.
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