Stuck With Your Mortgage and Getting Over The Payment Shock

Whether you are on a fixed rate deal or a discounted flexible deal, if your deal ends this year you should brace yourself for a significant increase to your usual monthly mortgage payment. 

From www.repossession-stoppers.com

Stuck With Your Mortgage and Getting Over The Payment Shock

Whether you are on a fixed rate deal or a discounted flexible deal, if your deal ends this year you should brace yourself for a significant increase to your usual monthly mortgage payment. 

This will be at its worst for people who took out there mortgage in 2003 & 2004, where the change of interest in + 2%. This means the monthly mortgage payments on a typical house with a mortgage of £250k will go up by £289 a month.

Typically, lenders SVR aren’t the most competitive deals around – so when your mortgage deal comes to an end you could simply change your mortgage provider and get another good deal right? Don’t hold your breathe… Here is why:-

Mortgage lenders are being much more selective about who they lend to and how much they lend in comparison to the value of the property (loan-to-value) because of the current credit crisis affecting the banking industry, which makes most high street lenders reluctant to offer mortgages for over 75% of the property value.

In addition, the ‘credit crunch’ seem to be in full swing as banks hike up their lending criteria, with much tighter lending rules to minimise risk of lending to bad debtors.  

The Council of Mortgage Lenders is so concerned that it has taken the extraordinary step of suggesting that some homeowners should sell their property rather than risk losing it.

Repossession-Stoppers.com advises anyone with a mortgage deal that runs out this year who are worried they will not manage to keep up your mortgage repayments to contact us. We can help you achieve a quick cash sale for your property – which will prevent repossession, and / or any adverse credit rating. Rent back services available in all areas if required – independent investors mean a better price for you.