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Homeowners who struggle with mortgage payments will get help under new deal

Cash-strapped homeowners struggling with mortgage payments during a cost-of-living crisis will get help under the new deal

  • People who are struggling to pay their mortgage get help from major banks
  • Deal negotiated by Jeremy Hunt has a range of measures to help households
  • Banks will offer new flat rates with no affordability test for consistent payers
  • But Martin Lewis says the “biggest concern” for most people will be spring

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Homeowners facing financial difficulties can make lower mortgage payments under a deal brokered yesterday by Chancellor Jeremy Hunt at a summit with bank bosses.

The Treasury Department said last night that bank chiefs had agreed on a range of measures to help struggling customers.

Those who encounter payment difficulties are offered targeted help, such as ‘short-term reduction of monthly payments’, a temporary switch to interest-only payment or extension of the term of the mortgage to reduce the monthly costs.

Banks also agreed that households coming to the end of their flat rates should get a new deal without another affordability test, provided they’ve kept track of their payments.

Chancellor Jeremy Hunt Struck A Deal With Major Banks To Help People Struggling To Pay Their Mortgages

Chancellor Jeremy Hunt struck a deal with major banks to help people struggling to pay their mortgages

Banks Also Agreed That Households Coming To The End Of Their Flat Rates Should Get A New Deal Without Another Affordability Test, Provided They'Ve Kept Track Of Their Payments. This Can Help Households Reduce The Amount That Increases Their Mortgage

Banks Also Agreed That Households Coming To The End Of Their Flat Rates Should Get A New Deal Without Another Affordability Test, Provided They'Ve Kept Track Of Their Payments. This Can Help Households Reduce The Amount That Increases Their Mortgage

Banks also agreed that households coming to the end of their flat rates should get a new deal without another affordability test, provided they’ve kept track of their payments. This can help households reduce the amount that increases their mortgage

Experts have warned that the rise in interest rates could send thousands of families into arrears in the coming months, with some at risk of having their homes repossessed.

Mr Hunt said controlling inflation was his ‘first priority’.

He added: ‘British lenders play a role in that. We expect every lender to take responsibility and support mortgage lenders who are struggling right now.”

Yesterday’s summit was also attended by consumer champion Martin Lewis, senior figures from the Financial Conduct Authority and bank executives representing 70 percent of the mortgage market, including HSBC, Barclays, Lloyds, Santander, NatWest and Nationwide.

Lewis Said The Biggest Concern For Most People Was That Interest Rates Would Rise In The Spring, Pushing Mortgage Payments Even Higher

Lewis Said The Biggest Concern For Most People Was That Interest Rates Would Rise In The Spring, Pushing Mortgage Payments Even Higher

Lewis said the biggest concern for most people was that interest rates would rise in the spring, pushing mortgage payments even higher

Mr Lewis, founder of the Moneysavingexpert website, said the pledges set a ‘good direction’ but warned more help would be needed.

The biggest concern for people’s mortgages – and the knock-on effect of mortgage increases on rents – is the situation in the spring, when we expect interest rates to be higher, energy prices to rise and other impacts on the cost of living. ‘, he said. said.

“So the important thing is that now conversations have started about what flexibility and tolerance measures can be taken to help those who are struggling. For those concerned about paying off mortgages, the sooner you communicate with your lender, the better.”

The meeting came as the FCA released new guidelines for lenders that reaffirmed the flexibility they have to help struggling mortgage holders.

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Jacky

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