Posts with tag: mortgage payments

Mortgage Payment Holiday Forms Available Online

Published On: March 26, 2020 at 11:38 am

Mortgage Payment Holiday Form Available Online

Mortgage payers who are facing financial difficulty, including buy-to-let landlords are to be offered payment holidays of up to three months during the coronavirus pandemic.

Customers of Yorkshire Building Society, Accord Mortgages, Accord Buy to Let and Chelsea Building Society who have found their finances affected by coronavirus are able to apply for payment holidays online now.

Customers who can make their next payment but would like to apply for a mortgage payment holiday or find out more about how payment holidays work should use their online services.

You can access the online forms here: www.ybs.co.uk/paymentholiday, www.accordmortgages.com/existing-customers/paymentholiday, or www.thechelsea.co.uk/paymentholiday.

The building societies have chosen to set up these online forms due to the fact that their call centres are particularly busy at this time and they have chosen to prioritise the most financially vulnerable customers first. They advise that customers who want to discuss a mortgage should only call if they are worried about meeting their next mortgage payment.

Ant Warrington, director of digital and innovation at Yorkshire Building Society, said: “We have introduced the facility to request a payment holiday online to help customers who can make their next month’s payment but who need to apply for a payment holiday.

“If you are not having difficulties meeting your next mortgage payment, we would recommend using the online form. Customers don’t need to provide any documentation to apply online – they just need to self-certify that their income has been either directly or indirectly impacted by coronavirus (Covid-19).

“If you have not been financially affected by coronavirus but are concerned that you might be in the future, please visit our online coronavirus (Covid-19) hub, which has information about mortgage payment holidays, including our most frequently asked questions. We will update the hub as the situation progresses.”

New homeowners, ‘need breathing space’

Published On: July 20, 2015 at 3:16 pm

Author: Em Morley

Categories: Landlord News

Tags: mortgage payments,mortgages,new homeowners

Homeowners require ‘breathing space,’ during the first year after purchasing a property, according to a new report.

Research from TSB suggests that 56% of new homeowners would appreciate assistance with their mortgage payments in the twelve months after buying their property. Buyers say that this assistance would help turn their property into a home.

Breathing space

TSB offer a, ‘breathing space’ mortgage, which gives new homeowners lower monthly payments during their first year of ownership. 95% of respondents to the survey said that they wish to put their own mark on their new property. 36% said they would want to change wallpaper of paint colour, 27% of people wanted new carpets, whereas 7% wanted a new kitchen.[1]

‘We know the first year after moving into a new home can be expensive as people look to add their individual touch in creating a home,’ commented TSB mortgages director, Ian Ramsden. ‘People have told us they’d welcome some breathing space in the first year after moving into their new home which is why we’ve launched these mortgages.’[1]

New homeowners, ‘need breathing space’

‘By reducing their mortgage payments during the first year, we’re helping people get a foot onto the property ladder whilst freeing up some of their monthly outgoings, which is a fundamental part of creating thriving local economies and people thriving across the country is a good thing for all of us,’ Ramsden added.[1]

[1] http://www.propertyreporter.co.uk/finance/over-50-of-new-homeowners-need-breathing-space-in-the-first-year.html

Mortgage support rates to be cut in July

Published On: June 17, 2015 at 12:55 pm

Author: Em Morley

Categories: Finance News

Tags: mortgage payments,mortgage rates,SMI

Concern is growing within a number of struggling homeowners with the news that the Government is to cut the amount of money they can claim to subsidise their mortgage payments.

From July, the Government will use a reduced interest rate to calculate how much money they lend to lenders to help them balance their monthly fees. At present, homeowners that qualify for mortgage interest support (SMI) get help with monthly payments on a mortgage worth up to £200,000, based on an interest rate of 3.63%.[1]

Changes

After a dip in high-street mortgage rates, the rate will be reduced to 3.12% from the 6^th July. This means that on a £100,000 mortgage arranged for twenty-five years, the amount that can be claimed to assist with payments will drop from £302 to £260.[1]

SMI is currently claimed by over 161,000 people. This is a means-tested benefit that can be received by people in receipt of income-based jobseekers allowance, employment and support allowance and pension credit. SMI is designed to support the borrower’s interest payments, but not their original capital.

Following an earlier rate-cut from 6.08% in 2010, the budget in the same year introduced a change. This statied that if the average mortgage rate recorded by the Bank of England was at least 0.5 percentage points different to the SMI rate, a change in interest recording would occur. This average fell in April of this year, prompting the cut.

Mortgage support rates to be cut in July

Makes sense

A spokeswoman for the Department of Work and Pensions said that, ‘it makes sense that the mortgage interest support we pay is tied to the Bank of England rate and that it should change as that rate changes. Mortgage support is not designed to cover an individual’s entire mortgage interest payment, but instead offers a measure of support for some people to prevent repossessions.’[1]

Mortgage rates have been tumbling for new lenders, with the recent months bringing a surge of record low interest rate deals. The Bank of England claim however that the average standard variable mortgage rate is still above the SMI cap, which stands at 4.53%.[1]

[1] http://www.theguardian.com/money/2015/jun/17/government-cuts-mortgage-support?CMP=twt_gu

Are You Aware of the Risks to Your Letting Business?

Published On: December 15, 2014 at 10:45 am

Author: Em Morley

Categories: Landlord News

Tags: becoming a landlord,landlord risks,mortgage payments

Becoming a landlord comes with many challenges and is not without risks. People become landlords for a variety of different reasons and many do not understand the potential pitfalls attributed to the role.

The National Landlords Association (NLA) has issued advice on two of the biggest challenges facing buy-to-let landlords in an attempt to warn them of the severest threats to their business. The two issues are:

Rent arrears

Figures from the NLA suggest that 32% of landlords have experienced rent arrears, from either late or non-payment, in the previous 12 months. Incredibly, the average amount of arrears that landlords have to face before they can serve a notice is an average of £1,500.[1] When legal fees and other expenses are factored in, costs can amount to thousands of pounds.

Are You Aware of the Risks to Your Letting Business?

Other factors that rent arrears can lead to include missed mortgage payments and no funds for maintenance improvements. For landlords who have tenants that have run into arrears, the
NLA offers tips on how best to deal with the problem:

Manage your budget

By offering ten rent payments into yearly budgets, rather than the traditional, and expected, 12, landlords will be able to deal with any periods of non-payment.

Be sure of the identity of the tenant

This sounds obvious enough, although a growing number of landlords are being targeted by rogue tenants. With the Immigration Act 2014 poised to be rolled out across the country next year, landlords must be particularly vigilant on who they are letting to and if they have the right to rent in the UK.

Build tenant relationships

Landlords should attempt to build a lasting relationship with tenants from the very start of their agreement. By showing tenants around, answering questions and being approachable, landlords will more than likely gain trust and respect, limiting the chance of problems during the tenancy.

Interest rates

Having been at a record low rate for a number of years, interest rates are widely expected to rise within 2015. The NLA are warning landlords to be prepared for a rise and to ask themselves the following questions:

Would an increase in interest rates affect mortgage payments? If yes, then to what extent?
How would future buy-to-let or re-mortgaging abilities be affected?
Are saving plans and budgets designed to cope with interest rate rises? Is there room to re-adjust?

The NLA is urging landlords to consider their options now, so that they are fully prepared for when potential interest rate rises come into effect.

[1] http://www.landlordtoday.co.uk/news_features/Are-you-aware-of-the-risks-that-could-threaten-your-lettings-business