Mortgage help if you are worried about your finances | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 31/03/2020

At the weekend, in a statement about the coronavirus pandemic, the Government revealed that it could be six months until the UK is fully back to normal, which for those who are already struggling financially could put added stress to their finances. For homeowners who do not yet need help with their mortgage but who are worried about how the coronavirus outbreak will impact their finances in the long-term, we’ve taken a look at some of the help available.

Mortgage lender

Those who are worried about how they will pay their mortgage in the next three months should speak to their mortgage lender as soon as possible. One of the Government’s measures to help consumers cope financially with the coronavirus outbreak is an ability to take a mortgage repayment holiday for up to three months, which mortgage lenders should be able to offer. Saying this, a repayment holiday might not be the best option available for everyone, but the mortgage lender should be able to provide homeowners with an alternative option that is right for their individual circumstances.

Independent mortgage broker

Homeowners who are concerned about how the coronavirus will impact their finances but who are still able to pay their mortgage for the time being can consider contacting an independent mortgage broker. Many mortgage brokers will be able to discuss with homeowners the options available to them, however it should be noted that many mortgage brokers will charge for this service. There are some brokers that have set up free helplines for those worried about paying their mortgage during the coronavirus outbreak. Mortgage Advice Bureau, for example, has set up a free support service for homeowners to answer any queries or worries people may have about paying their mortgage. To speak to a mortgage adviser via this service, homeowners can call 0808 296 3562.

Independent advice

Homeowners who have general concerns about their finances, not just related to paying their mortgage, can call Citizens Advice on 03444 111 444. Alternatively, for those with unmanageable debts and who are worried about the impact of the Coronavirus on their finances, they can contact a free debt charity such as StepChange.

Commenting on how the coronavirus is impacting mortgage borrowers, Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “With the monthly mortgage payment often being the largest outgoing a family has on a monthly basis, it is understandable that ensuring this payment can be met is vital to many. It is therefore positive to see the measures that the Government and mortgage providers have rolled out to support their customers in these uncertain times. While phone lines may be busy and wait times long, many providers offer online chat options as well.

“It is important that anyone who is concerned about being able to meet their monthly commitments seeks qualified, independent financial advice and understands the potential impact measures such as payment holidays will have. For example, while you do not have to repay anything during the mortgage payment holiday period, you still continue to accrue interest, so you may end up paying more over the long-term. It is also important to understand how your lender will represent a payment holiday to the credit reference agencies.

“Communicating early with your provider and seeking advice from support lines, such as the one Mortgage Advice Bureau is now offering, will hopefully ensure an educated decision can be made.”

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

paper house with calculator

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy