Amid the confusion, mild panic and toilet roll mountains that seem to have sprung within many households the Bank of England has brought rates down to 0.1% to bolster confidence and attempt to create a canvas for consumers and business to have access to cheap money.
Most lenders have yet to reprice fixed rates and seem to be cautious with cutting. Most have either withdrawn base rate linked tracker products or increased the margin against base. It will be interesting how lenders will change their underwriting practices with so many being affected with reduced incomes and uncertain times ahead.
In taking many calls from clients asking about their options we have compiled the following information for those with changes in your income due to the Coronavirus outbreak:
Lenders will be sympathetic and offer a payments break and possibly other solutions to help during this period.
- Every lender will have information on their website regarding the method to arrange help with payments. This will be almost certainly by phone or online document.
- Lenders have been swamped with requests and are experiencing huge wait times, please be patient and try calling at different times.
- Please be aware that interest will still be added to the mortgage balance increasing the size of your debt and increasing the term.
- If your mortgage product is approaching the end of the incentive period you should carefully consider about addressing this prior to requesting a payment holiday.
- Please speak to a suitably qualified individual or firm who may be able to provide guidance and valuable information during this difficult period.