A couple of readers have asked about mortgage fixes when they have a poor credit record or simply a lot of other debt: Ms A: We are in a DMP and we were told it would make it very hard to remortgage. So we are now on Santander’s SVR and it’s over 7%. Can we really just ask them for a new fix and they won’t say no? Mr B: I'm worried about talking to Nationwide when our current mortgage fix ends. … [Read more...]
Articles about Mortgages
Mortgages are a "priority debt". If you are having difficulty paying the mortgage you need to take debt advice as soon as possible - the earlier you do this, the more options you are likely to have.
These pages list all Debt Camel articles about mortgages in date order. If you would prefer to see the most popular articles grouped by theme, looking at "problems getting a Mortgage", "problems if you already have a mortgage" and "interest rates", then look at the Mortgages and Debt page.
When an interest-only mortgage ends, you have to repay all the amount you borrowed. You can't just carry on paying the interest. The money to repay it can come from three sources: savings or investments; by getting a new mortgage; or by selling your house. How many interest-only mortgages are there? FCA research found that at the end of 2022: There are now fewer than 1 million … [Read more...]
People often think that a mortgage lender will look at how good your credit score is. That isn't right - sometimes you can get a mortgage with a not good credit score or you may be rejected with a great credit score. Three key factors in getting a mortgage are: your deposit the affordability calculation - this is affected by current debts that you are repaying; your credit history - … [Read more...]
Extra-long mortgages of over 35 years used to be unusual. Twenty years ago only 2% of first-time buyers had one. But by the start of 2022 this has risen to about 8% and that had doubled to 17% by the end of 2022. In July 2023, Taylor Wimpey said that in the first half of 2023: 27% of its first-time buyers had a mortgage of more than 36 years, up from 7% in 2021 (The very low figure in 2021 … [Read more...]
If you are struggling to pay your mortgage now, or you will be soon when your fix ends, what are your options? Nearly 1.5 million mortgage fixes are ending in 2023. Many people will then face a new interest rate that is more than twice what they had been paying. The FCA says: if you’re struggling to pay your mortgage, or are worried you might, you don’t need to manage alone. Your lender has … [Read more...]
Support for Mortgage Interest (SMI) helps some people with the cost of their mortgage if they aren't working. Since 2018 this help has been paid as a loan secured on your house, not a benefit, see the gov.uk page on SMI. But this loan is cheap, you don't have to make any repayments to it until the house is sold and it does not show on your credit record, so this is not as bad as it … [Read more...]
On 7 December 2022, the FCA issued a consultation on Guidance for firms supporting their existing mortgage borrowers impacted by the rising cost of living. FCA consultations are normally lengthy, but here the FCA said: To ensure we can act quickly to enable firms to help consumers, we are consulting on this guidance over the next 10 working days. This is the sort of short deadline the FCA … [Read more...]
If your fixed mortgage has ended, or will soon, you could face a large increase in your mortgage payments. Most mortgages revert to their lender's Standard Variable Rate (SVR) when a fix ends. Some lenders use a different term, such as "Follow On Rate", but SVR is the most common. In 2023, the average SVR is 7.3% - many are much more. Millions of people are paying the SVR and most of them … [Read more...]
95% mortgages, where you only have to have a 5% deposit, are again becoming very hard to get. In September 2022 there were 274 deals for 5% deposit mortgages on offer - in mid December this had fallen to 130. Now in 2023 there are still very few 5% deposit offers. The Help To Buy scheme that helped buyers with only a 5% deposit closed to new applicants in October 2022. The … [Read more...]
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]