It’s possible to negotiate a temporary reduction in your mortgage payments with your lender.
It’s possible, depending on your mortgage that you could:
- Your lender may agree to lower your monthly interest payments if the value of your home exceeds the amount you still owe on your mortgage.
- Make the switch to an interest-only loan
- Temporary reduction or cessation of payments
- Repaying your mortgage over a longer period of time will result in higher overall interest costs.
- You’ll also have to figure out how to make payments on any outstanding debt.
- Discover the ins and outs of refinancing and dealing with mortgage debt.
- Ask your lender if there will be a fee for making modifications to your mortgage, and if so, how much. Your lender may impose additional costs for things like these.
- A redemption fee is the cost associated with paying off a fixed-rate mortgage loan early.
- There will be what is called a “administration charge” if you want to alter the conditions of your mortgage.
- You should consult a professional if the fees are excessive.
- If your mortgage payments are current,
To avoid Mortgage calculator for the Charter is an agreement endorsed by the majority of lenders.
If you’re current on your mortgage payments and your lender is a charter member, they have to provide you the option to either:
If you want to lower your monthly mortgage payment without committing to a longer loan term, you can do so by switching to interest-only payments for a period of six months.
Find out if your bank or credit union is a part of the Mortgage Charter by visiting GOV.UK.
Assuming your property is owned jointly
In most cases, if you purchase a home under a shared ownership program, you will benefit from both of the following:
- Mortgage payments made every month
- Renting from a landlord, typically a social landlord such a housing association
- If you are having trouble making your loan payments, you may be able to ask your lender to:
- Mortgage payment freeze or reduction
- Give you the option of paying simply the interest on your loan
- The other option is to request a mortgage extension from your lender, which will reduce your monthly payments but lengthen the time it takes to pay off your loan.
- Selling back some of your equity to your landlord could be another option for lowering your mortgage payments. Flexible tenure is a term for this kind of arrangement.
- There may be no options for varied lease terms within your shared ownership scheme. Inquire with your landlord about the possibility of a more adaptable lease.
- A person who owns an endowment policy
- You have two options if you own an endowment policy:
- The premiums on your endowment coverage should be lowered.
- Putting money into your endowment policy should be halted; you can make up the missed payments at a later date.
Changing an endowment policy can be a complex and financially hazardous process. Consult an impartial financial advisor if you’re considering making significant adjustments.
You should put the results of a mortgage calculator into context, though. Mortgage calculators have their uses and limitations much like any other internet tool, such as a symptom checker on a health website. You may get a head start on the home buying process with the help of a calculator tool, and it can also introduce you to concepts you may not be familiar with just yet.