Coronavirus: what does this mean for my mortgage?
We understand that at the moment your personal finances, and your mortgage, might be at the front of your mind. At Andrews, we’re more than sales and lettings, there’s also a collection mortgage advisers. Our advisers can help guide on your mortgage situation, as well as your insurances options.
Here’s a rundown of how your mortgage might be affected due to the coronavirus outbreak in the UK.
Interest rates
On March 19, 2020 the Bank of England cut its rate to 0.1%. This base rate sets the rate at which commercial banks can borrow money from the Bank of England. A lower base rate can mean a lower rate of interest for borrowers, however you’re unlikely to see an instant impact on your mortgage payments.
Mortgage Repayment holidays
Lenders, backed by the government, are taking steps to help manage the impact of Coronavirus. If you are unwell or at risk of lost income there may be an option to delay mortgage payments.
If you want to explore this option then you can call your Andrews Mortgage Adviser to discuss your options and find out what your lender is offering.
Changes to Your Product
If your lender can’t offer a full mortgage repayment holiday, there may be other ways they can help.
This could be by making changes to your product (such as increasing the term) or allowing you to switch to an interest-only product. Again, contact your Andrews Mortgage Adviser to discuss these options and find out if they are suitable for you.
If you’re worried about your mortgage then speak to one of our mortgage advisers, or contact your lender directly, to discuss your options. It’s important to do this as soon as possible and be able to discuss your full financial situation.
