The Bank of England base rate has been at a long term low of 0.5% since 2009 and many home owners with a mortgage have benefited from the low interest rate charged on these loans. However those working in the financial industry believe that the BofE rate will increase within the next 6 – 12 months, which could lead to monthly mortgage payments increasing.
This advice and information may help you to think about and prepare for an increase in the interest rates.
While rates are low could you take the opportunity to overpay your mortgage?
Could you be saving money now to use when your monthly payments increase?
Could you review your current spending and identify any areas you could save money?
Could you get a better mortgage deal with your current lender or elsewhere?
Talk to your lender – most lenders have options to help owners overcome difficulties with paying their mortgage, these options will depend on individual circumstances but could include:
Lengthening the term of your mortgage
Agreeing reduced payments in the short term
Agreeing a temporary 'payment holiday'
Re-financing the debt?
If you are in receipt of certain welfare benefits such as Income Support to may qualify for some help with paying your mortgage. Support for Mortgage Interest (SMI) makes a contribution toward the interest on eligible loans.
Some lenders operate an Assisted voluntary sale scheme – this can help you through the process of selling and you may get help with some of the costs of selling.
Seek free and independent advice from an organisation such as CAB who can help evaluate your income and outgoings, negotiate with your lender, and support you at court during repossession action.
Speak to the Housing Options team at Fareham Borough Council – we may be able to help with a short term loan or discuss your options should you have to sell or are repossessed.
Fareham Borough Council Housing Options Team, 01329 236100 www.fareham.gov.uk
Fareham CAB, 1st Floor County Library Building, Osborn Road, Fareham, 0300 4562987 www.farehamcab.org/index.html
Fareham Jobcentre Plus, Civic Way, Fareham 0345 6043719 www.gov.uk