Support for Mortgage Interest (SMI) is intended to help people with the cost of their mortgage if they aren't working. SMI has been given as a benefit so far, but from April 2018, it will only be given as a loan. SMI has been an important part of the UK benefits system since it was introduced in 1948. It only helps with the interest part of the mortgage repayments, not the capital. Who … [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.
Fixed rate mortgage ending – should you remortgage?
Do you know what your four options are when a fixed rate ends? In July 2017 new research shows there are over a million people in Britain paying a loyalty penalty by not remortgaging. On average this costs £439 a year and one in ten people are paying more than a thousand pounds a year extra. Let's start by looking at the four possible options and how long you should try to fix for. Then I'll … [Read more...]
95% mortgages – what you need to know
95% mortgages are back in fashion. After the 2008 crash, they almost completely vanished, with only a handful being available. But in mid-2017, there are now nearly 300 different deals to choose from. That's good news if you are a first-time buyer, or if you need to trade up to a larger house. Here are some points you need to watch out for. 95% of the value, not the price Say you have an … [Read more...]
Will very old debts stop me getting a mortgage?
A reader asked: My husband is now 33. When he was 18-20 he was a silly boy and got offered credit cards and loans from everywhere and he took them. Unfortunately he was ran up a £7K debt that he couldn't afford to pay back. He's obviously learned from his mistakes and has a good job, good income, no further debts or credit loans. Will his debt from his youth still affect him? His credit score is … [Read more...]
Will partial settlement make it hard to get a mortgage?
Ms F asked: "I have been in debt management for five years after my marriage breakdown. After an inheritance, I want to pay off my DMP as it will carry on for years. I could pay in full but my house needs some urgent work and my car is on its last legs. I asked about my credit score if I offer a partial settlement and was told this would show as partially settled on credit score file. Will I … [Read more...]
Interest only mortgages and debt advice
The Council for Mortgage Lenders(CML) has recently provided an update on how the stock of existing interest only mortgages is changing. In 2012 lenders increased their efforts to make contact with the holders of interest only (IO) mortgage, aiming to ensure that as many borrowers as possible can repay the mortgage at the end of the term. So now in 2106 we can see whether this is working. How much … [Read more...]
Consolidate debt before getting a mortgage?
A reader asked: "We went to see a mortgage adviser to check if we qualify for a mortgage. We are first time buyers, me and my husband have 4 credit cards each and loans. Because we have a lot of debt, he advised us to go to our respective banks for debt consolidation by taking up a loan each to make one payment on all our debts. He said that was the best option for now. Also in that way we … [Read more...]
Save a house deposit or pay off debt?
A reader asked: "A friend said not to pay my defaulted debts off but save money towards a deposit for a mortgage - is this a good idea?" It's often unwise to rely on friends for debt advice. They may be guessing, their situation may have been quite different from yours, or they may be assuming what happened to them years ago is still useful today... they may know nothing about the current … [Read more...]
Right to Buy – will debts stop you?
A reader asked: I moved in with my parents into their council house several years ago and we are looking into the right to buy scheme. We received the paperwork and it stated that you are not entitled to the right to buy if you owe money to creditors. Five years ago I lost my job and had a relationship breakup and unfortunately got into debt. Two accounts were defaulted and I went into a payment … [Read more...]
Can I get a mortgage with recent defaults?
A reader asked: My partner and I have a combined income of £54,000, We have a deposit of £20,000 (inheritance) and are looking to become first time buyers in a new build property at a price of £210,000. 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 … [Read more...]