New Support Measures for Mortgage Holders
The government’s new support for mortgage holders includes extending payment holidays or the opportunity to move to six months of interest-only payments. What’s more, the government has committed to providing better communication and clearer information about the support available. These rights are extended to all mortgage holders who are up to date with payments but struggling to meet them.
According to Money Saving Expert, mortgage lenders have also agreed to delay repossessions for the first year after a missed payment unless agreed with the mortgage holder, giving homeowners a bigger chance to catch up and get support if needed.
What Mortgage Support is Available?
The government has taken some significant steps to provide much-needed support to mortgage holders, so let’s explore these support measures further and gain a clearer understanding of how they could be beneficial:
Extended Payment Holidays
One of the key measures is the extension of payment holidays for mortgage holders. Originally introduced during the height of the pandemic, this relief allows homeowners to temporarily halt or reduce their mortgage payments. The latest announcement extends this safety net, giving homeowners more breathing room during difficult times.
Another significant measure is the option to move to six months of paying only interest, rather than interest and mortgage repayment. This gives homeowners the chance to reduce their monthly outgoings without falling behind on repayments or damaging their credit score over time.
Support for Mortgage Interest
Support for Mortgage Interest (SMI) is a government scheme designed to help homeowners who are in receipt of certain benefits. SMI pays the interest portion of a mortgage directly to the lender, thereby reducing the monthly payment for the homeowner. It’s important to note that SMI only covers the interest part of the mortgage and does not cover the capital repayment.
How to Access Support with Your Mortgage
If you are feeling overwhelmed by your mortgage payments, the good news is that there are support options available to you. Here’s how you can navigate your way towards the help you need:
Contact Your Mortgage Lender
Your mortgage lender should always be your first point of contact. They can inform you about the specific measures that they have in place and how you can access them. This could include extended payment holidays, interest-free loans, or adjusted repayment plans.
If you receive certain benefits, you may be eligible for the Support for Mortgage Interest scheme. You can apply for SMI through the Department of Work and Pensions (DWP). Contact the office that pays your benefit to find out if you will be eligible for this support. Bear in mind that there may be a waiting period before the payments begin, so it’s essential to apply as early as possible if you think you need it.
Consult a Specialist Financial Advisor
A specialist advisor can provide personalised advice based on your unique circumstances. They can help you understand the various support options available to you and guide you on the best choices to make.
Use Online Tools and Resources
You can find a wealth of information on financial websites, blogs, and forums to help guide your understanding of the support measures available and how to access them. Sites like Money Saving Expert offer comprehensive guides and tips for navigating mortgage difficulties. Plus, many financial institutions such as banks and lenders offer a range of online tools and resources to help you estimate loan payments, calculate interest, and better understand your financial situation.
How We Can Help?
When the stakes are high and your home is on the line, you don’t have to go through it alone. Homeowner Management Services is here to guide you every step of the way. We specialise in working closely with homeowners to prevent repossession, offering personalised solutions that fit your unique circumstances. If you are struggling with mortgage payments or facing repossession, contact us today to find out more about how we can help you keep your home.